UAE Cuts All Trade With Iran Over Missile Accusations

The United Arab Emirates has cut all trade with Iran indefinitely. The decision follows an accusation that Iranian forces fired two ballistic missiles at the country. Tehran says it did not launch them. Instead, officials in Iran claim the incident was a false flag operation designed to stir up trouble. This comes as US and Israeli strikes continue against their nation.

Early Wednesday morning, the UAE Ministry of Foreign Affairs released a statement. It said the move happened because recent escalations are undermining peace and security across the region. All commercial exchanges and financial transactions have been halted until further notice. The UAE Ministry of Defence confirmed its air defences spotted two missiles coming from Iran. One fell outside territorial waters while the other landed inside them. A follow-up note stated the projectiles were targeting maritime traffic. Officials promised to confront any attempt to undermine national security or navigation in the area.

Iran rejected the claims as baseless. Spokesman Esmaeil Baghaei called it a false flag operation taking place during an ongoing war launched by the United States and Israel against his country. He warned that such accusations contradict good neighbourliness. Baghaei urged regional parties to avoid unfounded claims against Tehran. He argued any honest assessment must also weigh the malicious actions of Washington and Tel Aviv.

This attack on Tuesday happened one day after a 60-day window for peace talks between the US and Iran expired without a breakthrough. The conflict has lasted more than five months so far. In the first six weeks of the war, Iran targeted the UAE with retaliatory strikes more than any other Gulf country. Tehran launched over 530 ballistic missiles, dozens of cruise missiles, and more than 2,200 drones at what it described as US assets. Tuesday's strike is the first aimed at the UAE since May. It comes days after Abu Dhabi accused Tehran of attacking two state-owned ADNOC vessels in the Strait of Hormuz. Iran has not claimed responsibility for those specific attacks yet.

The trade embargo arrives while the US maintains a naval blockade on Iranian ports. President Trump has indicated a shift toward economic pressure rather than military force to compel Tehran into accepting demands. Mark Kimmitt, a retired US general and former assistant secretary of state, told Al Jazeera that this embargo could hurt Iran more than anything Washington has imposed so far. He noted Dubai has quietly become Iran's most important trading partner. It now edges out both China and Turkiye to supply roughly one-third of everything Iran imports each year.

The UAE suspended direct cargo shipping between the two nations in early March, just days after the war began. Trade only resumed in late June via Dubai's Jebel Ali Port. Kimmitt said you cannot overstate or understate the importance of this trade, covering both finance and goods. That reliance goes deeper than ships carrying cargo. Dubai stands as a global financial hub that has long given Iran a discreet way to move money around international sanctions. This cuts off a route Tehran has relied on for years.

In many ways, the embargo being put on by the UAE is even more significant than the embargo being put on by the United States," he said. The former general said he doesn't expect other Gulf states to follow suit immediately. He predicts a "wait-and-see" approach will hold even if Iranian attacks continue. But he added that the UAE's move carries enough weight for Tehran to interpret it as bordering on an act of war. That comparison fits with the near-total embargo the US imposed on Japan after World War II.