UAE Cuts Trade, Financial Ties With Iran Over Missile Attack

The United Arab Emirates (UAE) has announced the suspension of all trade and financial dealings with Iran following reports of an Iranian missile strike targeting its vessels.

Naija News reports that the development follows a period of relative peace in the UAE, which had not experienced any Iranian missile threats since May, after enduring significant attacks during the initial stages of the Middle East conflict.

However, Abu Dhabi has accused Tehran of consistently attacking its tankers at sea in recent weeks.

“In light of regional escalations… all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice,” said UAE foreign ministry communications director Afra Al Hameli.

It is worth noting that the UAE hosts a substantial Iranian population and has historically been a key trading partner for Iran, which is under United States (US) sanctions, at least before the ongoing war.

Both nations share profound cultural and historical connections as neighboring countries across the Gulf, with ties spanning centuries through coastal communities, trade routes, and familial networks.

It could be recalled that the UAE had recalled all of its ambassadors at the beginning of the conflict and the closure of schools and a hospital associated with Iran.

In March 2026, authorities mandated the shutdown of an Iranian state-affiliated hospital in Dubai, as confirmed by three employees of the facility to AFP, along with the closure of schools and a community center.

At that time, a UAE official informed AFP that “specific institutions directly connected to the Iranian regime and IRGC will be shut down under targeted measures” due to their violations of UAE laws.

On Tuesday, Abu Dhabi accused Iran of launching two ballistic missiles towards the UAE, marking the first such incident since May, a development that led to its fresh action.

Subsequently, it was reported that the missile attack was aimed at shipping, although Tehran refuted the claim of having fired missiles at the UAE.

“UAE air defences detected two ballistic missiles launched from Iran towards the country, with the first falling outside the country’s territorial waters, while the second fell within the territorial waters,” the UAE ministry noted in a statement posted to social media.

A second statement released later claimed that the missiles “were targeting maritime navigation and fell into the sea”.

Meanwhile, Iranian foreign ministry spokesman Esmaeil Baqaei “categorically rejected the United Arab Emirates’ claim that Iran had launched a missile towards that country”, calling it harmful to regional trust and security efforts.

Reports said that a phone alert had come in earlier, warning residents of a “potential missile threat”. It was the first such alert since a false alarm in June and an alert in July for an attack that ultimately did not enter UAE territory.

Prior to this, the most recent missile alert was issued in early May. Nevertheless, reports have it that tankers owned by the UAE’s state-run oil firm ADNOC have faced multiple attacks in recent weeks.

When the conflict in the Middle East commenced on February 28, the UAE was significantly impacted by Iran’s assaults, with almost 3,000 missiles and drones launched at the nation, more than any other area in the region.

Following the implementation of a memorandum of understanding between Iran and the United States in June, which has since failed, the UAE did not report any attacks, unlike other Gulf nations.