Abu Dhabi (TDI): The United Arab Emirates has suspended all trade activities, commercial exchanges and financial transactions with Iran until further notice, citing the worsening regional security situation following a reported missile launch from Iran.
The UAE Foreign Ministry said Wednesday that the decision was taken in response to regional escalation that it said was undermining peace and security in the region and beyond.
The announcement came a day after the UAE Defense Ministry said it had detected two ballistic missiles launched from Iran. It was the first such incident reported since a strike on Fujairah port on May 4.
The UAE Defense Ministry later said its assessment indicated that the missiles were targeting maritime traffic. Both projectiles ultimately fell into the sea, according to the ministry.
Read More: Iran War: Is a New Middle East Order Emerging?
Iran rejected the UAE’s account. Foreign Ministry spokesman Esmaeil Baghaei described the allegations as “baseless” and urged regional countries to avoid making what he called unsupported accusations against Tehran, Reuters reported.
According to Iranian state media, Baghaei said any assessment of the incident should also take into account what Iran describes as continuing US and Israeli actions that threaten regional security.
The latest escalation comes after a 60-day period for US-Iran negotiations expired on Monday without a breakthrough, raising concerns that the conflict could intensify further. The confrontation has already severely disrupted shipping through the strategically important Strait of Hormuz, a major route for global energy supplies.
The UAE Defense Ministry said its forces remained fully prepared to respond to any threat to the country’s security. Earlier Tuesday, the UAE Interior Ministry issued an emergency alert to residents following the reported missile threat. A subsequent alert said the situation was safe and urged residents to resume normal activities.
The UAE has previously accused Iran of targeting vessels operated by the state-owned Abu Dhabi National Oil Company (ADNOC) while they were transiting the Strait of Hormuz.
Read More: Erdoğan Urges Trump to Keep Iran Diplomacy Alive
Iran has not claimed responsibility for those incidents. However, Iran’s Islamic Revolutionary Guard Corps has previously warned that vessels associated with Tehran’s adversaries or those failing to comply with Iranian instructions could face action while passing through the strategic waterway.
The suspension of economic and financial activity with Iran marks a significant escalation in relations between the two regional neighbours, at a time when tensions across the Gulf remain high.
