The United Arab Emirates suspended all trade, commercial exchanges, and financial transactions with Iran on Wednesday, following the detection of two ballistic missiles launched from Iranian territory toward the Gulf state.
On Tuesday, the UAE’s defence ministry reported that air-defence systems detected two ballistic missiles launched from Iran, with the first falling outside the country’s territorial waters and the second within them. The ministry later stated that assessments indicated the missiles were targeting maritime navigation and fell into the sea. No damage or injuries were reported. Residents in Dubai received a brief phone alert warning of a potential missile threat, which was later lifted.
In response, the UAE’s foreign ministry announced the immediate halt to all economic engagement with Iran, citing regional escalations that undermine peace and security. The decision threatens to disrupt the gradual restoration of economic and diplomatic ties between Abu Dhabi and Tehran after months of efforts to reduce tensions.
Iran denies launching missiles
Iran’s foreign ministry spokesman Esmaeil Baghaei rejected the UAE’s claim, calling the accusation “baseless” and stating that the allegation “runs counter to the principle of good-neighborliness.” Baghaei emphasized that Iran remains committed to preventing further escalation of insecurity in the region.
The UAE’s Ministry of Defense said it stands ready to respond to any attempts to undermine the country’s security or maritime navigation. The ministry confirmed that the first missile fell outside UAE territorial waters, while the second landed within them.
Iran warns Gulf states against aiding US military
Hours after the UAE’s announcement, Iran’s armed forces issued a warning to Gulf countries, stating that any assistance or facilitation provided to the US military would be considered participation in US military operations. Armed forces chief of staff Ali Abdollahi said it was unlikely that large numbers of US military aircraft, including refueling aircraft, could be present in the region without the knowledge of host countries.
Abdollahi’s remarks followed the redeployment of the USS George Washington aircraft carrier to the Middle East, replacing the USS Abraham Lincoln amid reports of deteriorating living conditions for its crew.
Background: Escalation timeline
The conflict between Iran and the US began on February 28 after US-Israeli attacks on Iran, which retaliated with missile and drone strikes across the region, including attacks on US bases. The UAE bore the brunt of Iran’s early retaliation, with nearly 3,000 missiles and drones directed at the country—more than any other Gulf state.
A tentative ceasefire agreement in June led to a reduction in attacks, but tensions have resurfaced in recent weeks. The Strait of Hormuz, a critical trade corridor through which vessels departing most UAE ports must pass, remains a flashpoint. Iran has blockaded the strait and stated it will remain closed until a peace agreement with the US is reached.
US President Donald Trump recently taunted Iran on social media, depicting the Strait of Hormuz as a “NEW U.S. Territory,” while also insisting that talks with Iran were off. The collapse of a framework US-Iran deal aimed at reopening the vital trade corridor has further strained relations.