UAE halts all trade dealings with Iran after escalation, missile alerts in Dubai

The United Arab Emirates (UAE) has halted all trade, commercial exchanges, and financial transactions with Iran "until further notice" due to escalating tensions in the region. Foreign ministry communications director Afra Al Hameli announced the decision, stating that it was taken in response to "regional escalations that undermine regional and international peace and security". The UAE will continue to protect the international financial system and adhere to international laws and global standards.

The suspension of trade and financial ties occurred after the UAE reported that two ballistic missiles were fired from Iran towards the country. Both missiles fell into the sea – one within UAE territorial waters and the other outside – according to the defence ministry. The ministry claimed the missiles were intended to target maritime traffic, but Iran denied firing any missiles.

Earlier, Dubai residents received a missile alert for the first time in weeks, prompting a response from UAE air defence systems. The interior ministry later declared the situation safe. This incident followed recent Iranian strikes on UAE-linked ships in the Strait of Hormuz, where the UAE last confirmed an attack in May.

The escalation has also impacted shipping through the Strait of Hormuz, a crucial oil artery. Two Abu Dhabi National Oil Co. vessels were attacked while transiting the waterway in the past week, and another was hit on Friday evening. The Strait of Hormuz, through which about a fifth of the world's oil and liquefied natural gas passes, has seen a significant drop in traffic since Iran closed the vital energy route following the US and Israeli assassination of Supreme Leader Ayatollah Ali Khamenei and missile attacks on Iran.