The United Arab Emirates has suspended all trade, commercial exchanges and financial transactions with Iran until further notice, following a sharp rise in tensions between the two countries.
The decision came after the UAE said it had detected two ballistic missiles launched from Iran on Tuesday. The UAE Defence Ministry said the missiles appeared to be aimed at ships in the area. One came down inside UAE territory, while the other fell outside the country.
“Regional escalations are threatening regional and international peace and security,” the UAE Foreign Ministry said in a statement.
Iran has rejected the accusation. Foreign Ministry spokesman Esmaeil Baghaei called the UAE’s claim “baseless”, according to Iranian state media.
The UAE had warned residents on Monday night about a possible missile threat before authorities later said the situation was under control and people could return to their normal activities.
The suspension represents a major setback for relations between the neighbouring countries, which have maintained significant commercial links despite longstanding political and security differences.
The latest dispute also comes as shipping through the Strait of Hormuz faces continuing disruption amid the wider regional conflict. The narrow waterway between Iran and Oman is one of the world’s most important routes for oil. And other energy shipments, making any further escalation a concern for international trade and energy markets.
