The United Arab Emirates suspended all trade, commercial exchanges and financial transactions with Iran until further notice. UAE took this step after accusing Tehran of launching two ballistic missiles towards the Gulf state. Iran has denied the allegation.
UAE Foreign Ministry Communications Director Afra Al Hameli said the decision followed regional developments that threatened regional and international peace and security. The move marks a sharp setback in economic ties between the two countries.
The UAE Defence Ministry said its air defences detected two ballistic missiles launched from Iran. One fell outside UAE territorial waters, while the second fell inside them, according to the ministry. A later assessment said both missiles were targeting maritime navigation and fell into the sea. The UAE did not report casualties from the incident.
The Interior Ministry briefly sent residents a phone alert warning of a potential missile threat. Authorities later lifted the alert and said the situation was safe. Iranian Foreign Ministry spokesman Esmaeil Baghaei rejected the UAE’s account, describing the claim as baseless and saying such allegations could damage regional security efforts.
The incident comes after several recent security concerns involving UAE-linked shipping in the Strait of Hormuz. The UAE has also accused Iran of attacking vessels operated by state-owned oil company ADNOC.
The latest dispute comes as tensions around the Strait of Hormuz continue to disrupt shipping. Iran has said the strategic waterway will stay closed until it reaches a peace agreement with the US.
The UAE’s decision puts further pressure on already strained regional trade routes. It also signals a tougher position from Abu Dhabi towards Tehran as maritime security concerns grow. The suspension will continue until further notice, according to the UAE government.
Also Read: Debris Fallout Threatens Gulf Infrastructure as UAE, Kuwait Intercept Iranian Missiles