The United Arab Emirates has suspended all financial and economic transactions with Iran until further notice, citing escalating military tensions and a missile threat from Tehran. The move has once again highlighted the fragile relationship between the Gulf Arab state and Iran, despite their deep commercial links.
The UAE Halts Financial Ties , a key US ally and major global oil producer, was among the Gulf countries most affected by Iranian attacks during the early stages of the wider Middle East conflict. The last reported strike on UAE territory occurred on May 4, when a missile targeted Fujairah port, an important oil-export hub.
The latest escalation followed a UAE defence ministry announcement that two ballistic missiles had been launched from Iran. The incident triggered telephone alerts to residents warning of a potential threat, marking the first such alerts in months. According to the UAE, its assessment indicated that the missiles were targeting “maritime traffic.” Both projectiles ultimately fell into the sea.
A subsequent alert informed residents that the situation was safe and urged them to resume normal activities. Iran’s foreign ministry rejected the UAE’s assessment, calling the claim that the missiles targeted maritime traffic “baseless.”
UAE Halts Financial Ties Signals Commitment to Dialogue
Despite the suspension of commercial ties, the UAE Halts Financial Ties said it remains committed to diplomatic engagement. Afra Al Hameli, Director of the Strategic Communications Department at the Ministry of Foreign Affairs, said Abu Dhabi continues to support dialogue and cooperation aimed at strengthening regional peace, stability and prosperity.
However, she said escalating regional tensions that threaten international security had prompted the decision to halt trade, commercial exchanges and financial transactions with Iran.
Dubai remains one of Iran’s most important commercial and financial lifelines. UAE diplomatic adviser Anwar Gargash also dismissed reports that Abu Dhabi was providing financial facilities to Tehran, describing them as false and part of “desperate media campaigns.”
Energy Sector Faces Continued Pressure
The UAE Halts Financial Ties has been increasingly affected by the broader conflict, which began with US-Israeli strikes on Iran in February. While attacks on UAE territory stopped in May, maritime threats against vessels continued.
In August, Abu Dhabi National Oil Company (ADNOC) said attacks on its personnel and assets were significantly disrupting operations, as the energy giant worked to maintain customer supplies amid an exceptionally challenging operating environment.
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