UAE halts Iran transactions after missile launches
News Desk
Dubai: The United Arab Emirates has suspended trade, commercial exchanges and financial transactions with Iran until further notice, as tensions between the two countries rise following reports of ballistic missile launches from Iranian territory.
The UAE Foreign Ministry said the decision was taken in response to what it described as a regional escalation threatening regional and international peace and security.
The move follows a statement by the UAE Defence Ministry that it detected two ballistic missiles launched from Iran on Tuesday. According to the ministry, the missiles were assessed to have targeted maritime traffic but both fell into the sea without causing reported damage.
The incident marks the first reported missile launch of its kind since a strike on Fujairah port on May 4, adding to concerns over the security of commercial shipping in the Gulf.
Iran has rejected the UAE’s allegations. Foreign Ministry spokesperson Esmaeil Baghaei described the UAE statement as “baseless” and urged regional countries to avoid what he called unsubstantiated accusations against Tehran.
Baghaei said regional developments should also be viewed in the context of what Iran describes as continued US and Israeli actions that threaten regional stability.
The latest escalation comes after a 60-day period set for US-Iran peace talks ended on Monday without a breakthrough. The lack of progress has intensified concerns about further conflict and its impact on maritime trade, particularly around the strategically important Strait of Hormuz.
The UAE Defence Ministry said its forces remain fully prepared to respond to threats to the country’s security.
Following the missile alerts, the UAE Interior Ministry also issued a warning to residents but later said the situation was safe and advised people to resume normal activities.
Relations between Abu Dhabi and Tehran have faced additional strain over recent incidents involving shipping in the Strait of Hormuz. The UAE has previously accused Iran of attacking vessels operated by its state-owned ADNOC while they were transiting the strategic waterway.
Iran has not claimed responsibility for those incidents, although its Islamic Revolutionary Guard Corps has previously warned vessels linked to Tehran’s adversaries that they could face action while passing through the strait.
The UAE’s latest decision could further affect commercial and financial ties between the two countries at a time when heightened regional tensions are already disrupting shipping and raising concerns over the wider economic impact.
