UAE Halts Trade and Financial Ties With Iran After Missile Threat

The United Arab Emirates announced on Tuesday that it is halting all trade and financial transactions with Iran, escalating economic pressure on the Islamic Republic hours after accusing it of launching ballistic missiles toward Emirati territory.

The move was made “in light of regional escalations that undermine regional and international peace and security,” said Afra Al Hameli, a spokeswoman for the Emirati Foreign Ministry. She added that the Emirates remains “firmly committed to safeguarding the integrity of the international financial system.”

Located just 50 miles across the Persian Gulf, the UAE has historically enjoyed close economic and cultural ties with Iran, even as political tensions persist.

Dubai has long served as a key trade hub for Iran, and analysts note its role in Iranian efforts to circumvent sanctions—a point of frequent concern for American authorities. Emirati officials maintain that they rigorously enforce sanctions violations when detected.

The government statement did not specify the exact trigger or timing of the trade suspension. However, over the past week the UAE has accused Iran of attacking Emirati oil tankers transiting the Strait of Hormuz, a vital chokepoint for global energy shipments.

On Tuesday, the Emirati Defense Ministry warned of an incoming missile attack, later confirming that two ballistic missiles launched from Iran targeted maritime aviation. Iran has denied involvement in those strikes and has neither confirmed nor denied responsibility for the recent tanker incidents.

The announcement came just hours after a phone call between President Trump and Emirati ruler Sheikh Mohammed bin Zayed.

The UAE endured the brunt of Iran’s retaliation earlier this year after U.S. and Israeli strikes on Iran, with more than 2,700 ballistic missile and drone attacks reported on Emirati soil, including a major American military base.

Following a U.S.-Iran cease‑fire agreement in April, tensions eased, allowing direct senior‑level contacts and the resumption of flights between the two nations.

As the truce has deteriorated, Iran has concentrated its attacks on Bahrain and Kuwait, largely sparing the UAE.

The recent tanker attacks drew strong condemnation from the Emirati government. On Saturday, the Foreign Ministry accused Iran of using shipping in the Strait of Hormuz as “a tool of economic coercion or blackmail,” calling it a “direct threat to the stability of the region.”

In a separate call on Tuesday, U.S. Secretary of State Marco Rubio and Emirati National Security Adviser Sheikh Tahnoon bin Zayed discussed “U.S.-UAE coordination to hold Iran and its terrorist proxies accountable for ongoing attacks,” according to State Department spokesman Tommy Pigott.

The Emirati Foreign Ministry has not yet responded to a request for comment regarding the motivation and timing of its decision.

Sanam Mahoozi contributed reporting from London.

Source link