The United Arab Emirates has suspended all commercial relations and financial transactions with Iran after detecting two Iranian ballistic missiles launched toward its territory on Tuesday.
The decision was announced by Afra Al Hameli, director of the Department of Strategic Communications at the UAE Ministry of Foreign Affairs. Al Hameli said in a statement that all trade and financial exchanges with Iran were halted until further notice due to regional tensions that undermine international peace and security.
She added that the United Arab Emirates remains committed to dialogue, cooperation, and regional integration to promote peace and stability. Al Hameli also emphasized that the nation continues to protect the integrity of the international financial system while complying with international law.
Missile Detection and Financial Sanctions
The trade suspension followed an official statement from the UAE Defence Ministry reporting that air defense systems had detected two ballistic missiles launched from Iran against the country.
According to the ministry, the first missile landed outside UAE territorial waters, while the second missile struck inside territorial waters. A subsequent brief note from authorities confirmed that an initial assessment determined the missiles targeted maritime traffic, though further details were not released.
The UAE Defence Ministry declared its total readiness to confront any threat and guaranteed it would respond firmly to any attempt to destabilize national security.
The United Arab Emirates, a Gulf federation of seven emirates on the Arabian Peninsula, serves as a major commercial and logistics hub for the Middle East, maintaining extensive financial connections across the region.
Iran Denies Missile Launch Claims
In Tehran, Iranian Foreign Ministry spokesman Esmail Baqaei categorically rejected the claim that the Islamic Republic launched missiles against the UAE.
Baqaei described the accusation as harmful to regional trust and security efforts.
The missile incident comes after weeks of complaints by the UAE regarding attacks on ships belonging to its state oil company transiting the Strait of Hormuz. The Strait of Hormuz is a vital maritime route separating Iran from the Arabian Peninsula, carrying a significant portion of global crude oil exports.
While the UAE had reported maritime incidents in recent weeks, it had not previously reported direct actions against its territory, which has also faced threats from pro-Iranian militias based in Iraq.
Escalating Tensions and Failed Peace Talks
US President Donald Trump said on Tuesday that there are no ongoing or scheduled talks with Iran. The statement came one day after the expiration of a 60-day deadline established in a June 17 memorandum of understanding signed between Washington and Tehran to negotiate a peace agreement.
The conflict with Iran began on February 28 following a joint US and Israeli offensive and is now approaching the six-month mark.
Repeated attempts at negotiations have failed to yield significant progress or narrow the gap between the warring parties, leaving the region in an entrenched state of war.
