UAE suspends trade and financial transactions with Iran

The United Arab Emirates has suspended all trade, commercial exchanges, and financial transactions with Iran until further notice, marking a significant escalation in economic measures amid rising tensions between Tehran and Abu Dhabi. The UAE Ministry of Foreign Affairs issued the statement, rejecting claims of inaccurate reporting on its economic ties with Iran.

The announcement came shortly after the UAE Ministry of Defense reported that its air defenses detected two ballistic missiles launched from Iran. While initially stating one missile fell outside UAE territorial waters and the second within them, authorities later assessed the missiles were directed at maritime traffic, not intentionally striking UAE territory. This incident underscored the heightened security risks in the region, particularly around the Strait of Hormuz.

Abu Dhabi simultaneously reaffirmed its commitment to dialogue, cooperation, and regional integration as essential for peace and stability. The UAE stressed its dedication to safeguarding the international financial system in accordance with global law. This economic suspension is presented as part of a broader strategy to balance security concerns with the UAE's policy of maintaining diplomatic and economic ties.

The economic measures also followed a phone call between UAE President Sheikh Mohammed bin Zayed Al Nahyan and U.S. President Donald Trump. The leaders discussed bilateral cooperation and regional developments, including efforts to address escalating tensions. This conversation occurred as U.S.-Iran diplomacy remained stalled, with a 60-day negotiating window having expired without an extension of the interim framework.

“

All Trade, Commercial Exchange, and Financial Transactions with Iran Halted