UAE suspends all trade and financial dealings with Iran

The United Arab Emirates has announced it is suspending all trade, commercial exchange and financial transactions with Iran until further notice. Afra Al Hameli, Director of the Strategic Communications Department at the Ministry of Foreign Affairs, attributed the decision to regional escalation, stressing that the UAE remains committed to protecting the integrity of the international financial system in line with international law and global standards. She also dismissed claims about the state of bilateral economic ties and reaffirmed the UAE's openness to dialogue and cooperation.

The announcement came after Abu Dhabi said on Tuesday that Iran had fired two ballistic missiles, later clarifying the salvo targeted shipping rather than the country directly. Both missiles fell into the sea, one within Emirati territorial waters. Iran denied the claim, with foreign ministry spokesman Esmail Baghaei rejecting allegations that Tehran had launched a missile at the UAE.

The wider war began on 28 February with US and Israeli strikes on Iran, after which Tehran began daily missile and drone attacks on targets in neighbouring countries. Tuesday's suspension is the latest in a series of Emirati measures against Iran, following the earlier recall of its ambassador and the closure of Iran-linked schools and a hospital. It remains unclear whether the suspension extends to dealings routed through third countries, given past reports that Iranian networks use front companies in free trade zones to bypass restrictions.

Hours later, Iran's armed forces chief of staff, Ali Abdollahi, warned Gulf states against assisting the United States, saying any such assistance would amount to participation in US military operations.

Emirati ADNOC oil tankers have been repeatedly targeted in the Strait of Hormuz in recent weeks, including attacks on 8 and 14 August with no casualties reported. Abu Dhabi has described the strikes as acts of piracy and violations of UN Security Council resolutions on freedom of navigation, demanding Iran halt the attacks and fully reopen the strait. Oil flows through Hormuz have dropped sharply this year, and US energy officials do not expect a return to pre-war trade patterns before early 2027.