The United Arab Emirates (UAE) has halted all trade, exchanges, and financial dealings with Iran until further notice, according to a statement from its foreign ministry on Wednesday. The move comes amid regional tensions that the UAE claims threaten both regional stability and international peace.
This decision followed a warning from the UAE’s defense ministry on Tuesday, which reported the detection of two ballistic missiles launched from Iran. This was the first such incident since an attack on the Fujairah port on May 4. The ministry later specified that the missiles were aimed at “maritime traffic” and both landed in the sea.
Iran’s foreign ministry spokesperson, Esmaeil Baghaei, early Wednesday dismissed the UAE’s statement as “baseless.” He urged “all regional parties” to avoid making “unsubstantiated accusations” against Iran, as reported by Al Jazeera. Baghaei also emphasized that ongoing actions by the U.S. and Israel—what he termed “malicious actions”—contribute to regional instability, citing a history of false-flag operations.
This missile launch occurs just days after a 60-day window for US-Iran peace negotiations expired without progress, raising fears of renewed conflict. Since February, tensions have disrupted shipping through the Strait of Hormuz.
The UAE’s interior ministry issued an alert earlier on Tuesday reassuring residents that the situation was under control and normal activities could resume after an initial warning of a missile threat. The country has also previously accused Iran of attacking its state-owned ADNOC vessels while they transited the Strait of Hormuz, though Iran has not claimed responsibility for these attacks. Iran’s Revolutionary Guards have previously threatened retaliation against vessels linked to Iran’s rivals or those that fail to follow Iranian directives.