UAE suspends all trade with Iran after missile strike

The United Arab Emirates announced an indefinite suspension of all trade, commercial exchanges, and financial transactions with Iran on Wednesday, citing regional escalations that undermine peace and security.

The decision came after the UAE's defense ministry said the country's air defense systems identified the launch of two ballistic missiles from Iran toward its territorial waters. According to UAE officials, both missiles fell into the water and caused no damage or casualties. The ministry said the attack targeted maritime navigation.

Afra Al Hameli, communications director of the UAE's Foreign Affairs Ministry, said in a statement that "in light of regional escalations that undermine regional and international peace and security, all trade, commercial exchanges and financial transactions with Iran have been halted until further notice."

Al Hameli added that the UAE remains "firmly committed to safeguarding the integrity of the international financial system, in line with international law and the highest global standards," while stressing the country's "steadfast commitment to dialogue cooperation and regional integration as essential means of advancing peace, stability and prosperity in the region."

The reported missile strike marks the first such attack on the UAE since May, according to officials. The suspension represents a significant escalation in tensions between the two countries, as the UAE-Iran trade relationship had been worth billions annually.

Iran's Foreign Ministry spokesman Ismail Baghaei denied the allegations, rejecting the UAE's accusation that Iranian forces fired the missiles.