The United Arab Emirates (UAE) has suspended all trade, commercial exchanges and financial transactions with Iran following what it described as an Iranian missile attack targeting maritime vessels.
The UAE Foreign Ministry said the measures would remain in place until further notice, citing rising regional tensions and recent attacks involving UAE-linked tankers.
Abu Dhabi said Iranian forces fired two ballistic missiles towards the UAE on Tuesday, with one falling outside the country’s territorial waters and the other landing within its waters.
The UAE later said the missiles were targeting maritime navigation and fell into the sea.
Iran, however, denied launching any missile at the UAE, with its Foreign Ministry spokesman, Esmaeil Baqaei, rejecting the allegation and warning that such claims could undermine regional security efforts.
The latest development marks a major escalation in relations between the neighbouring countries, which have longstanding cultural, economic and historical ties.
The UAE has a sizeable Iranian community and has traditionally maintained significant trade links with Iran despite international sanctions against Tehran.
Abu Dhabi had earlier recalled its ambassador to Iran and taken measures against Iran-linked institutions, including the closure of a hospital, schools and a community centre in Dubai.
The UAE said its decision followed growing concerns over maritime security, with tankers belonging to the state-owned Abu Dhabi National Oil Company reportedly targeted in recent weeks.
At the height of the regional conflict, the UAE said it faced thousands of missile and drone attacks, making it one of the countries most affected by the fighting.
The suspension of economic and financial dealings is expected to further strain relations between the two Gulf neighbours and could have implications for regional trade and maritime activities.
