The United Arab Emirates has suspended all commercial, trade, and financial transactions with Iran until further notice, citing regional escalation that undermines international peace and security. The foreign ministry announced the decision on Wednesday, with strategic communications director Afra Al Hameli reaffirming the UAE's commitment to safeguarding the integrity of the international financial system.
The move follows accusations that Iran fired two ballistic missiles at Emirati territory on Tuesday — one landing outside and one inside UAE territorial waters — prompting a brief public shelter-in-place alert, the first since July. Iran's foreign ministry spokesman Esmail Baghaei dismissed the accusations as baseless. Tankers belonging to state oil company Adnoc have been repeatedly targeted in recent weeks.
Tensions have surged since the 60-day window under a US-Iran memorandum of understanding signed in June expired on Monday without a broader agreement. Top Emirati negotiator Mohammad Bagher Ghalibaf said the Strait of Hormuz would remain closed until Washington honours its commitments under that deal.