UAE Halts All Trade With Iran After Fresh Missile Fire

The United Arab Emirates has suspended all trade, commercial exchanges, and financial transactions with Iran, citing renewed missile fire and regional escalation. The announcement came after two ballistic missiles were fired toward the UAE late Tuesday, both splashing down in the Persian Gulf. The UAE's Defense Ministry said the missiles appeared to target maritime traffic, though it was unclear if they were aimed at Emirati ships or territorial waters.

The Foreign Ministry said the punitive measures would remain in place until further notice, even as it reiterated a commitment to "dialogue, cooperation and regional integration." The move further isolates Iran, which is already under heavy US sanctions and a naval blockade.

Iranian Foreign Ministry spokesperson Esmail Baghaei denied that Iran had launched any missiles toward the UAE. However, Tehran has repeatedly attacked shipping in the Strait of Hormuz, including four tankers owned by Abu Dhabi's state-owned ADNOC over the past two weeks. Since the conflict began, nearly 20 ADNOC vessels have been struck by missiles or drones, killing one person and wounding 20 others.

The strait, through which a fifth of the world's traded oil and gas once passed, has become the central battleground of the war. Iran has used its control over the waterway as its biggest strategic advantage, launching hundreds of ballistic missiles and thousands of drones at targets in the UAE, including Dubai's commercial airport and energy infrastructure.

Iran has accused Gulf states of facilitating US military operations and issued fresh warnings to countries on the southern shores of the Persian Gulf. General Ali Abdollahi, Iran's Chief of Staff, said any assistance to US forces would be considered participation in aggression.

Before the war, the UAE was one of Iran's largest trading partners, supplying over 30% of its imports—worth about $21 billion—and receiving nearly 13% of its exports. The suspension comes as Washington prepares to tighten economic pressure further. Treasury Secretary Scott Bessent has signaled a combination of isolation and continued blockade of Iranian ports.

The IMF forecasts inflation of nearly 70% in Iran this year and a 5.4% contraction in its economy, with the rial at record lows.