UAE suspends all trade, financial ties with Iran after missile attack

The United Arab Emirates has suspended all trade activities, exchanges and financial transactions with Iran until further notice, the Foreign Ministry said in a statement on Wednesday.

The move comes amid a regional escalation that the ministry said was undermining regional and international peace and security.

Earlier, the UAE’s Defence Ministry said its air defence systems had detected two ballistic missiles launched from Iran towards the country. Both missiles fell into the sea, with one landing inside the UAE’s territorial waters and the other outside, it said.

In a post on X, the ministry said the UAE remained on high alert and was fully prepared to respond to any potential threat.

“The Ministry of Defence affirms that it remains on high alert and fully prepared to address any threats, and to respond firmly to any attempt aiming to undermine the security of the UAE, in a manner that safeguards its sovereignty, security and stability, and protects its interests and national capabilities,” the post said.

In the weeks after the US and Israel launched their military campaign against Iran on February 28, the UAE was frequently targeted by Iranian missiles and drones. However, Tuesday’s reported attack was the first such incident in weeks.

Iran has yet to respond to the UAE’s decision to suspend trade and financial ties, but Tehran has rejected the allegation that it launched two missiles towards the Arab country.

Iranian Foreign Ministry spokesperson Esmail Baghaei said the allegations were contrary to the principle of good neighbourliness and harmful to regional efforts to build trust.

Baghaei called on Gulf countries to refrain from making “baseless accusations” against Tehran and blamed actions by the United States and Israel for the complicated security situation in the region.

Meanwhile, UAE President Sheikh Mohamed bin Zayed Al Nahyan received a phone call from US President Donald Trump on Wednesday. It was not immediately clear whether the two leaders discussed the alleged security threat posed by Tehran in the region.

On Tuesday, Trump said the US had no talks planned with Iran but insisted that the Strait of Hormuz remained “open and operating,” despite limited traffic and a reported strike on a ship exiting the waterway.