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The United Arab Emirates has imposed an indefinite ban on all trade and financial transactions with Iran, citing allegations that Iranian forces launched two ballistic missiles toward the UAE.
Tehran has strongly denied the allegation, calling it baseless.
The UAE Foreign Ministry announced the decision on Wednesday, saying all trade, commercial exchanges and financial activities with Iran would remain suspended until further notice amid tensions threatening regional peace and security.
The UAE Defence Ministry said its air defence systems detected two ballistic missiles launched from Iran.
One reportedly fell outside UAE territorial waters, while the other landed inside them. The ministry said the missiles appeared to target maritime traffic and warned that any attempt to undermine national security or maritime safety would be met firmly.
Iran rejected the accusation, with its Foreign Ministry describing the claims as unfounded and suggesting the incident could be a “false flag” operation.
The UAE’s decision could put significant economic pressure on Iran because Dubai has long served as an important commercial hub for Iranian imports. Analysts cited by Al Jazeera said Dubai supplies nearly one-third of Iran’s annual imports, making the trade suspension potentially more damaging than some sanctions imposed by Washington.
The move also raises concerns about a broader escalation in the Gulf, although analysts do not expect other Gulf states to immediately follow the UAE’s lead.
