UAE suspends all trade with Iran after missile attack

The United Arab Emirates announced on Tuesday that it was suspending all trade, commercial exchanges, and financial transactions with Iran after accusing Tehran of firing two ballistic missiles toward the country — the first such attack since May and a sharp escalation in Gulf tensions.

The UAE Defense Ministry said it detected the missiles at around 9:00 p.m. local time, with one falling inside Emirati territorial waters and the other in international waters. The ministry assessed that the missiles targeted maritime navigation. Iran's Foreign Ministry denied responsibility for the attack.devdiscourse+1

In response, the UAE Foreign Ministry said "all trade, commercial exchanges and financial transactions with Iran have been halted until further notice," citing "regional escalations" while adding that the UAE "remains committed to dialogue and cooperation".al-monitor

Escalating Maritime Confrontations

The missile incident followed a rapid deterioration in UAE-Iran relations over the Strait of Hormuz. In the days preceding the attack, Iran targeted at least three vessels linked to Abu Dhabi National Oil Company in the strait, with as many as 19 ADNOC-linked vessels reportedly targeted in total. On Monday, Iranian media reported that Iranian forces had detained a UAE-linked tanker near Qeshm Island for allegedly violating Iranian maritime rules.marineinsight

The UK Maritime Trade Operations agency also reported on Tuesday that a vessel was struck by an "unidentified projectile" while leaving the Strait of Hormuz, injuring a crew member. A separate attack killed at least one sailor on another commercial vessel transiting the waterway.rferl+1

Shipping traffic through the strait has plummeted. Only six cargo ships passed through on August 17, compared to more than 130 daily before the US-Israeli war with Iran began in late February.rferl

Diplomatic Deadlock

The trade suspension came as US President Donald Trump declared on Tuesday that "there are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran," one day after the 60-day Islamabad Memorandum of Understanding expired without producing a final agreement. Iran's parliament speaker Mohammad Baqer Qalibaf reiterated that the Strait of Hormuz would remain closed until Washington lifts its naval blockade, releases frozen Iranian assets, and ends oil sanctions.rferl

Trump also escalated rhetoric toward Oman, which has been mediating between Iran and other Gulf states, warning on Sunday that the US could strike the country if it "gets in the way". The threat came as Oman's Sultan Haitham bin Tariq met UAE President Sheikh Mohammed bin Zayed in Abu Dhabi on Monday to coordinate on regional security.eurasiareview+1