UAE Halts All Trade with Iran After Accusing Tehran of Missile Launches

The United Arab Emirates said on Wednesday it will suspend all trade and financial dealings with Iran "until further notice" after accusing Tehran of firing two ballistic missiles that landed in the Persian Gulf on Tuesday night. The Emirati foreign ministry said the measure was taken in response to the missile splashes, which prompted nationwide alerts and temporary evacuations.

Iran’s foreign ministry rejected the allegation, with spokesperson Esmail Baghaei stating that Iran had not launched any missiles toward the UAE. The suspension adds to existing U.S. sanctions that already limit Iran’s access to international markets.

Before the conflict, the UAE accounted for more than 30% of Iran’s imports, valued at about $21 billion, and handled roughly 13% of its exports, serving as a key re-export hub. Mohammad Farzanegan, a professor of Middle Eastern economics at the University of Marburg, warned that the embargo could also harm the UAE’s economy, which relies on regional stability for its business, finance, tourism and investment sectors.

Regional partners, including Kuwait and Bahrain, have also condemned Iran for attacks on shipping in the Strait of Hormuz. The trade halt coincides with statements from U.S. officials about additional measures to increase economic pressure on Iran.