The United Arab Emirates has suspended all trade exchanges and financial transactions with Iran “until further notice”. The decision comes as tensions between the two countries rise following reported missile activity.
The UAE’s state-run WAM news agency reported the decision, citing the Foreign Ministry’s strategic communications director. Authorities have not yet provided further details about the suspension.
The announcement followed a statement from the UAE Defence Ministry about two Iranian ballistic missiles detected near the country.
Iran Rejects UAE Missile Allegations
Iran has rejected the UAE’s claim that missiles were launched from Iranian territory toward the Gulf country. Foreign Ministry spokesperson Esmaeil Baghaei described the allegations as “baseless”.
“Accusing the Islamic Republic of Iran contradicts the principle of good neighbourliness and hinders efforts to build trust among the countries of the region,” the Iranian Foreign Ministry said in a statement on its official Telegram channel.
Baghaei also urged “all regional parties” to avoid making unsubstantiated allegations against Tehran.
The exchange of accusations comes as tensions across the Middle East remain elevated. The United States and Israel previously launched joint strikes against Iran, prompting Tehran to retaliate against targets in several regional countries.
The UAE hosts US military assets, making it particularly significant in the ongoing regional confrontation.
UAE Reports Two Ballistic Missiles
Earlier on Tuesday, the UAE Defence Ministry said its air defences detected two ballistic missiles launched from Iran.
“UAE air defences detected two ballistic missiles launched from Iran toward the country, with the first falling outside the country’s territorial waters, while the second fell within the territorial waters,” the defence ministry said in a statement posted on X.
The ministry said the incident represented the first detected missile barrage aimed at the country in several months.
The UAE Interior Ministry had earlier issued a brief phone alert warning residents about a “potential missile threat”. Authorities lifted the alert shortly afterwards.
“Due to the current situation, potential missile threats, immediately seek a safe place in the closest secure building,” the interior ministry said in the alert.
It was the first such warning since a false alarm in June. Authorities also issued an alert in July for an attack that ultimately did not enter UAE territory.
The previous missile warning before those incidents came in early May.
Regional Tensions Threaten Diplomatic Efforts
The latest developments have added pressure to already fragile diplomatic efforts between Iran and the United States. In mid-June, the two countries signed a memorandum of understanding aimed at ending their conflict and establishing a lasting peace agreement.
Pakistan mediated the agreement between Tehran and Washington. However, negotiations later broke down over disagreements concerning the memorandum and navigation through the Strait of Hormuz.
The strategic waterway remains a critical route for global energy exports. Consequently, continued tensions around the Strait could have wider economic and security consequences.
The UAE’s suspension of trade and financial transactions with Iran now adds another layer to the regional crisis. Further details about the duration and scope of the measures are expected as authorities assess the situation.
