UAE Halts All Trade and Financial Links with Iran Over Missile Incident

The United Arab Emirates said it will suspend all trade, commercial exchanges and financial transactions with Iran after accusing Tehran of firing ballistic missiles toward maritime traffic. The decision ends a key economic link that accounted for about 31% of Iran’s imports, valued at roughly $21 billion in 2024, and 13% of its exports, according to World Trade Organization data.

The UAE Foreign Ministry said the measures will remain in effect until further notice, describing the missile launches as a regional escalation that undermines peace and security. Emirati officials reported that two missiles launched from Iran landed in the sea and were aimed at navigation routes. Iran denied involvement, with its foreign ministry calling the accusation unfounded.

Miad Maleki, a senior fellow at the Foundation for Defense of Democracies and former Treasury official, noted that the UAE and China are Iran’s primary economic connections, adding that Dubai has functioned as a gateway for third-country goods and financial flows to Iran. He said most imports recorded as coming from the UAE are actually transshipped through Dubai.

The United States has previously sanctioned Dubai-based exchange houses and trading entities it said facilitated Iranian financial networks, but neither Washington nor Abu Dhabi has confirmed coordination on the new trade freeze. The move occurs amid stalled U.S.–Iran diplomatic talks and ongoing tensions over the Strait of Hormuz, a strategic waterway that transports a significant share of global oil and gas.