UAE Suspends All Trade with Iran After Latest Missile Attacks

The United Arab Emirates suspended all trade and financial transactions with Iran on Wednesday. This action followed the detection of two ballistic missiles launched from Iran toward the UAE on Tuesday.

The Emirati Defense Ministry stated that its air defense systems detected the missiles, with one falling outside and the second within the country's territorial waters. The UAE Foreign Ministry announced the halt due to regional escalations that undermine regional and international peace and security. Iran's Foreign Ministry denied reports of the missile attack, implying it could have been a false flag operation.

Iran's armed forces also warned Gulf countries against assisting the US military on Wednesday. The UAE has experienced repeated attacks by Iranian drones and missiles this year, including the bombing of dozens of ships belonging to Abu Dhabi’s state-owned ADNOC energy company. The reported launch of two ballistic missiles on Tuesday marked the first act of aggression from Tehran in about three months.

The two countries share a trade relationship valued at some $28 billion. The Emirates have been in helping Iran's economy survive under U.S. sanctions. Both nations are members of BRICS, an economic and security coalition. Foundation for Defense of Democracies senior fellow Miad Maleki stated that the UAE and China are "Iran’s two economic bloodlines." The U.S. government has previously asked the UAE to crack down harder on sanctions violators.