The decision by the United Arab Emirates to suspend all financial and economic operations with Iran until further notice, citing military escalation by Tehran and missile threats, has once again drawn attention to the strained relations between this major oil producer in the Persian Gulf and Iran.
The UAE, a close ally of the United States and a regional power, was the Persian Gulf country most affected by Tehran’s strikes in the early stages of the Middle East war. However, the last recorded attack on UAE territory occurred on May 4 in the port of Fujairah, a key oil export hub.
Missile threat and Iran’s denial
The UAE’s decision to suspend commercial ties was made after the country’s defense ministry reported detecting two ballistic missiles launched from Iran. This was the first time in several months that residents received phone notifications of potential threats.
In its statement, the ministry said it estimated the missiles were aimed at “maritime shipping”. Both missiles fell into the sea. The UAE also sent a phone notification to residents on Tuesday, informing them that the situation was safe and urging people to return to normal activity after the previous warning. The Ministry of Foreign Affairs of Iran denied the UAE‘s statement that its missiles were targeting maritime shipping, calling it “unfounded”.
Commitment to dialogue and trade suspension
Dubai, the main commercial center of the UAE, is one of the most important economic hubs for Tehran.
A representative of the UAE, Afra Al-Hameli, Director of the Strategic Communications Department at the Ministry of Foreign Affairs, stated that the UAE is committed to dialogue and cooperation to promote peace, stability, and prosperity in the region. Al-Hameli noted that in light of the regional escalation that undermines regional and international peace and security, all trade and financial operations with Iran have been suspended.
Anwar Gargash, diplomatic advisor to the President of the UAE, wrote in a post on the platform X that rumors of “financial assistance to Iran” are “untrue and part of unfounded media campaigns”.
The UAE has been drawn into the broader regional war that began in February with US‑Israeli strikes on Iran. Tehran’s attacks on UAE territory ceased in May, but continued in neighboring Kuwait and Bahrain. Attacks on UAE vessels at sea did not stop.
In August, the Abu Dhabi National Oil Company (ADNOC), one of the world’s largest energy companies, reported that it had been significantly affected by “unprovoked attacks on its people and assets”, trying to continue to meet customer needs in “extremely challenging conditions”. ADNOC stated in its statement that several of its vessels had been attacked by missiles and drones while transiting the Strait of Hormuz since the start of the conflict.
The missile launch, for which the UAE blamed Iran, occurred after a 60-day period allocated for peace talks between the US and Iran ended without a breakthrough. This raised concerns about further escalation of the conflict, which since February has caused disruptions in shipping through the Strait of Hormuz and shaken global markets. Iran did not take responsibility for the attacks on ADNOC vessels. The Islamic Revolutionary Guard Corps of Iran had previously threatened to take action against vessels passing through the strait if they were linked to Tehran’s opponents or did not comply with Iranian directives.
Source: REUTERS
