UAE Suspends All Trade and Financial Transactions with Iran Amid Regional Tensions

The United Arab Emirates said it is suspending all trade, commercial exchanges, and financial transactions with Iran until further notice, citing recent regional escalations that threaten peace and security. The decision follows reports that two ballistic missiles, allegedly targeting maritime navigation, fell into the sea, an incident Iran denied.

Afra Al Hameli, a spokesperson for the UAE foreign ministry, posted the announcement on X, emphasizing that the move reflects concerns over the destabilising impact of the missile incidents and the broader conflict involving the United States and Iran.

The UAE is Iran’s second-largest trading partner after China, and bilateral trade had been expanding despite tightening U.S. sanctions. The suspension comes after Iranian forces targeted vessels belonging to the UAE’s state oil company in the Strait of Hormuz, marking the UAE as the most frequently attacked U.S. ally in the region.

Oil prices have risen, with Brent crude trading above $92 a barrel and U.S. West Texas Intermediate near $85, as markets price in the risk of prolonged disruptions to oil flows through the strategic waterway.

U.S. President Donald Trump has stated that there are no ongoing talks with Tehran, while Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, warned that the Strait of Hormuz would remain closed until the United States meets conditions outlined in a June memorandum of understanding, including lifting sanctions and unfreezing Iranian assets.

Analysts note that the suspension of UAE-Iran trade adds further pressure on Iran’s economy and could influence the dynamics of the regional conflict.