The United Arab Emirates (UAE) has suspended all trade, commercial exchanges and financial transactions with Iran, citing intensifying regional tensions linked to the ongoing conflict between the United States and Tehran.
Afra Al Hameli, Director of the Strategic Communications Department at the UAE's Ministry of Foreign Affairs (MoFA), announced the move on X on Tuesday, dismissing "all allegations regarding the status of the economic relationship" between the UAE and Iran.
مديرة الاتصال الإستراتيجي في وزارة الخارجية: وقف جميع الأنشطة والتبادلات التجارية والمعاملات المالية مع إيران
— Afra Al Hameli (@AfraMalHameli) August 18, 2026
أكدت سعادة عفراء الهاملي، مديرة إدارة الاتصال الاستراتيجي في وزارة الخارجية، أن دولة الإمارات العربية المتحدة تنفي كافة الادعاءات حول وضع العلاقة الاقتصادية مع الجمهورية…
"In light of regional escalations that undermine regional and international peace and security, all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice," Al Hameli said.
She added that the UAE "remains firmly committed to safeguarding the integrity of the international financial system, in line with international law and the highest global standards," while reiterating the country's "steadfast commitment to dialogue, cooperation, and regional integration as essential means of advancing peace, stability, and prosperity in the region."
The development came after the country claimed that Iran launched two ballistic missiles towards the United Arab Emirates, with one falling outside the country's territorial waters and another coming down within them, the UAE Ministry of Defence said, after a missile threat alert, that put its air-defence systems on heightened readiness.
According to the UAE Defence Ministry, its air defences “detected two ballistic missiles launched from Iran toward the country”.
Earlier, the UAE also strongly condemned an Iranian attack on two vessels affiliated with state-run oil giant ADNOC as they transited the Strait of Hormuz.
In an August 14 statement, MoFA said no injuries were reported but described the strike as "a flagrant violation" of UN Security Council resolution 2817, which affirms freedom of navigation.
UAE Strongly Condemns Targeting of Two ADNOC Vessels While Transiting Strait of Hormuz
— Afra Al Hameli (@AfraMalHameli) August 13, 2026
The United Arab Emirates has strongly condemned and denounced the hostile Iranian attack that targeted two vessels affiliated with ADNOC as they transited the Strait of Hormuz, with no…
The ministry accused Iran's Revolutionary Guard Corps of using the strait "as a tool of economic coercion or blackmail," calling the attacks acts of piracy and a direct threat to regional stability and global energy security.
ALSO READ: Hormuz Heats Up: UKMTO Flags Second Carrier Strike In A Day; Casualty Reported
The suspension of trade ties marks a significant escalation from Abu Dhabi, a key US ally in the Gulf that has historically maintained economic engagement with Iran despite broader tensions.
It comes amid a wider standoff over the Strait of Hormuz, where shipping traffic has been disrupted for weeks amid Iranian projectile attacks and a US-enforced naval blockade, as Washington and Tehran remain locked in conflict following the collapse of a ceasefire earlier this year.
ALSO READ: UAE Accuses Iran Of Firing Two Ballistic Missiles As Gulf Tensions Re-Escalate
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