UAE Suspends Trade with Iran After Accusing Tehran of Missile Strikes on Shipping

Dubai: Tensions between the UAE and Iran escalated sharply on Tuesday after Abu Dhabi accused Tehran of launching two ballistic missiles at maritime shipping in the Gulf — an allegation Iran promptly denied.

According to a statement issued by the UAE foreign ministry on social media, the country's air defence systems picked up two ballistic missiles fired from Iranian territory, with one landing outside UAE territorial waters and the second striking within them. A subsequent statement said assessments confirmed both missiles had been directed at maritime navigation routes before ultimately falling into the sea.

Iran's foreign ministry spokesman Esmaeil Baqaei categorically dismissed the UAE's version of events, insisting Iran had not fired any missile toward the country and warning that such allegations undermine ongoing efforts to build regional trust. The denial comes even as Iran continues to insist it will keep the Strait of Hormuz — the vital route through which UAE-bound and outbound shipping must pass — shut until it secures a peace agreement with Washington.

In response to what it described as worsening regional tensions, the UAE announced late Tuesday that it was halting all trade and financial dealings with Iran indefinitely.

Notably, the UAE's public statement followed nearly two hours after a brief mobile alert had already warned residents of a possible missile threat, instructing them to seek shelter in the nearest secure building. The alert was withdrawn shortly after being sent out.

Meanwhile, vessels belonging to state oil firm ADNOC have come under repeated attack in recent weeks. Since fighting across the West Asia intensified since February 28, the UAE was attacked multiple times by missile strikes from Iran, absorbing nearly 3,000 missile and drone strikes — more than any other country in the area.

A brief period of relative calm followed a memorandum of understanding that came into force between the US and Iran in June, during which the UAE reported no attacks, unlike several other Gulf nations.