Rabat – The United Arab Emirates has halted all commercial and financial dealings with Iran today after accusing Tehran of firing ballistic missiles toward its territory, marking a sharp escalation.
According to the Associated Press, the decision followed the reported firing of two ballistic missiles toward the UAE Tuesday night, triggering nationwide shelter warnings before both missiles landed.
According to official statements, the UAE Foreign Ministry affirmed that the suspension will remain in place “until further notice,” while maintaining that Abu Dhabi stays committed to dialogue, cooperation, and regional integration.
Tehran denies missile launch
Rejecting the Emirati accusations, Foreign Ministry spokesperson Esmail Baghaei denied that Tehran had launched missiles toward the UAE. Meanwhile, the UAE Defense Ministry assessed the missiles as targeting maritime traffic, although it remained unclear whether Emirati vessels or the country’s territorial waters were the intended target.
Amid ongoing tensions in the Strait of Hormuz, four tankers belonging to state-owned Abu Dhabi National Oil Company (ADNOC) came under attack over the past two weeks, with no casualties reported. The strikes are part of a broader pattern of attacks since the war began, during which nearly 20 ADNOC vessels have been targeted by drones and missiles in the waterway, killing one person and injuring 20 others.
With just 10 vessels crossing the strait on Tuesday, traffic through the strategic waterway remains well below pre-war levels, at less than one-tenth of its typical volume before the conflict began.
Trade ban adds pressure on Iran
As one of Iran’s most significant trade partners, the UAE supplied more than 30% of Iran’s imports, worth around $21 billion, while receiving nearly 13% of Iranian exports, valued at roughly $7 billion before the war, according to the Associated Press.
Beyond direct trade, the UAE has served as a critical re-export hub, providing Iranian businesses with access to third-country goods and commercial infrastructure despite international sanctions, making the suspension particularly significant for an economy already under mounting external pressure.
The Emirati move comes as Washington prepares additional economic measures against Tehran, following remarks by US Treasury Secretary Scott Bessent that the strategy will combine greater economic isolation with a continued blockade of Iranian ports.
Iran is already facing severe economic strain, with the International Monetary Fund (IMF) forecasting inflation of nearly 70% this year and an economic contraction of 5.4%, while the Iranian rial has fallen to record lows.
