UAE Suspends All Trade with Iran Amid Regional Tensions

The United Arab Emirates said it is suspending all trade and financial exchanges with Iran until further notice, citing regional escalations that threaten peace and security. The announcement came after two ballistic missiles, which the UAE described as targeting maritime navigation, fell into the sea; Iran denied launching the missiles.

Afra Al Hameli, a spokesperson for the UAE foreign ministry, posted on X that "all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice" in a statement released late Tuesday.

The move marks a significant shift, as the UAE is Iran's second-largest trading partner after China, and bilateral commerce had been expanding despite ongoing U.S. sanctions. The decision follows recent attacks on UAE-owned vessels by Iran in the Strait of Hormuz and a broader pattern of Iranian missile and drone strikes on U.S. allies in the region.

Oil markets reacted to the news, with Brent crude rising to $92.20 a barrel and U.S. West Texas Intermediate climbing to $85.24, reflecting concerns over continued disruptions to oil flows through the strategic waterway.

U.S. President Donald Trump has repeatedly stated that no talks are underway with Tehran, while Iranian officials blame the U.S. maritime blockade for domestic shortages and rising prices. The broader diplomatic framework intended to end the conflict, a Memorandum of Understanding signed in June, expired on Monday without renewal.

Analysts note that the suspension could further strain regional supply chains and exacerbate the already tight fuel market, as refineries worldwide face challenges from both war-related damage and export restrictions.