UAE suspends trade, financial transactions with Iran

Abu Dhabi: The United Arab Emirates (UAE) has suspended all trade, commercial exchanges and financial transactions with Iran until further notice, the UAE Ministry of Foreign Affairs (MoFA) said on Wednesday, August 19.

Afra Al Hameli, Director of the Strategic Communications Department at MoFA, dismissed allegations about the current state of economic relations between the two countries, saying the suspension followed regional developments threatening peace and security.

Al Hameli said the UAE continued to view dialogue, cooperation and regional integration as important to advancing stability and prosperity. She also reaffirmed Abu Dhabi’s commitment to international law, global standards and the integrity of the international financial system.

The announcement came after UAE air defence systems responded to two ballistic missiles launched from Iran on Tuesday, August 18. One missile fell outside the UAE, while the other came down in the country’s territorial waters.

The incident triggered an emergency alert on residents’ mobile phones, marking the first such warning in more than five weeks. The alert was lifted within minutes, and the Ministry of Defence later said the missiles had been directed towards maritime navigation.

The UAE had faced a heavy barrage of Iranian attacks after the conflict began on February 28, with nearly 3,000 missiles and drones directed towards the country.

Attacks on the UAE stopped after a memorandum of understanding between the US and Iran came into effect in June. However, tensions have remained high elsewhere in the Gulf, particularly around the strategically important Strait of Hormuz.

Washington and Tehran continue to take opposing positions over the waterway. US President Donald Trump recently shared a map showing the Strait of Hormuz under the heading “New US Territories”, signalling his administration’s position on the strategic passage.

Iran, meanwhile, has said the strait will remain closed until it reaches an agreement with the US, keeping uncertainty high for regional security and maritime traffic.