Siege widens as the UAE takes its revenge on Iran
Abu Dhabi announced that as punishment for Iranian missile attack it is halting all its trade relations with Tehran; The move could deal another blow to an economy that is already in crisis: 'The UAE is a gateway for Iran to third countries, it depends on it'
The United Arab Emirates announced on Tuesday night that it would sever all trade ties with Iran in response to a missile attack the UAE claims was launched by Iran. This decision follows a phone call between US President Donald Trump and UAE President Mohammed bin Zayed. The UAE, like other Gulf neighbors, has faced missile and drone attacks during the war.
Despite Iran's embargo, the UAE had been experiencing a severe economic crisis, which President Trump aims to worsen with further sanctions. Iran's economy has been already struggling, with inflation expected to reach 70% this year and a 5.4% contraction forecasted for the entire year. The UAE, Iran's largest importer of goods, supplies $21 billion worth of goods annually and is the destination for 13% of Iran's exports, amounting to $7 billion.
However, Iran denies involvement in the missile attack and claims its Revolutionary Guards seized an oil tanker in the Strait of Hormuz. The UAE's move could significantly impact Iran's economy, with analysts warning that the embargo could lead to renewed conflict.
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