The United Arab Emirates (UAE) has suspended all trade exchanges and financial transactions with Iran "until further notice," UAE's state-run WAM news agency reported, citing the Foreign Ministry's strategic communications director.
No further details were revealed as yet. However, the announcement came after the UAE Defence Ministry said it detected two Iranian ballistic missiles that targeted maritime navigation.
Foreign Ministry spokesperson Esmaeil Baghaei has rejected the UAE’s statement that missiles were launched from Iran against the Gulf country, warning against what he described as “baseless” accusations.
“Accusing the Islamic Republic of Iran contradicts the principle of good neighbourliness and hinders efforts to build trust among the countries of the region,” the Iranian Foreign Ministry said in a statement on its official Telegram channel.
Baghaei also urged “all regional parties” to refrain from making unsubstantiated allegations against Tehran.
Tensions in the Middle East have heightened after the US and Israel launched joint strikes on Iran.
In response, Tehran retaliated with strikes in regional countries, including the UAE, hosting US assets.
In mid-June, Iran and the US signed a memorandum of understanding, mediated by Pakistan, aimed at ending their war and reaching a lasting peace agreement.
Talks, however, have since broken down amid ongoing disputes over the memorandum’s terms and navigation through the Strait of Hormuz, a critical route for global energy exports.
"Potential missile threat"
Earlier in the day, the UAE accused Iran of firing two ballistic missiles at its territory, marking the first time the defence ministry detected a barrage aimed at the country in months.
"UAE air defences detected two ballistic missiles launched from Iran toward the country, with the first falling outside the country's territorial waters, while the second fell within the territorial waters," said a statement posted by the defence ministry on X on Tuesday.
The statement came nearly two hours after a brief phone alert warned UAE residents of a "potential missile threat".
"Due to the current situation, potential missile threats, immediately seek a safe place in the closest secure building," the interior ministry said in the phone alert, which was lifted shortly after.
It was the first such alert since a false alarm in June and an alert in July for an attack that ultimately did not enter UAE territory. Before that, the last missile warning came in early May.
