UAE Suspends All Trade with Iran

The United Arab Emirates has suspended all trade, commercial exchanges and financial transactions with Iran until further notice. Abu Dhabi announced the decision on Wednesday amid rising regional tensions following allegations that Iran launched two ballistic missiles.

In a statement, the UAE Ministry of Foreign Affairs said regional tensions had reached a level that threatened peace and security. Against this backdrop, it decided to suspend all commercial and financial activities with Iran.

Earlier on Tuesday (August 18), the UAE Ministry of Defence said its air defence systems had detected two ballistic missiles launched from Iran. One missile fell outside the UAE’s territorial waters, while the other landed inside its waters. The ministry claimed the missiles were targeting maritime communications and vessel traffic.

Before the incident, the UAE’s National Emergency Crisis and Disaster Management Authority warned residents of a possible missile attack and urged them to remain in safe places. It later instructed citizens to follow updates through official channels.

Iran, however, rejected the UAE’s allegations. Tehran called the claim of a missile attack “baseless” and urged regional countries to refrain from making such allegations against Iran.

Tensions between Iran and the UAE have increased in recent times. Abu Dhabi had earlier accused Tehran of attacking two vessels belonging to the UAE’s state-owned oil company ADNOC in the Strait of Hormuz. Iran has not claimed responsibility for the attacks.

Trade relations between Iran and the UAE have long been important. Dubai, in particular, has been a major regional hub for trade and financial transactions with Iran. Abu Dhabi’s latest decision could therefore have a significant impact on the economic ties between the two countries.

The decision comes amid growing regional tensions and could further complicate relations between Iran and its neighbouring countries in the Gulf. It has also renewed concerns over maritime security and international trade in the Strait of Hormuz.

Sources: Al Jazeera, Reuters