The United Arab Emirates has suspended all trade, commercial exchanges and financial transactions with Iran after accusing Tehran of launching two ballistic missiles towards the Gulf state, marking a fresh deterioration in ties between the two countries amid renewed tensions across the region.The UAE defence ministry said its air-defence systems detected two ballistic missiles launched from Iran towards its territory on Tuesday. The incident triggered an emergency alert on residents’ phones and was described as the first direct Iranian attack on the UAE since May.The ministry later said its assessment indicated that the missiles had been targeting maritime traffic. One missile fell into the sea outside the UAE’s territorial waters, while the other fell within them. No damage or injuries were reported.
UAE halts economic ties with Tehran
Following the missile incident, the UAE foreign affairs ministry announced a sweeping suspension of economic engagement with Iran.The ministry said that “in light of regional escalations that undermine regional and international peace and security, all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice”.The decision threatens to disrupt the gradual restoration of economic and diplomatic links between Abu Dhabi and Tehran after months of efforts to reduce tensions. Trade between the UAE and Iranian ports had resumed in some areas, while certain Iranian flights to the UAE had also quietly returned.The development could also affect the UAE’s efforts to restore a sense of normality after months of conflict in the wider region. The emergency alert issued on Tuesday was the first such warning in several months, apart from a false alert in June.Dubai’s financial district had begun filling up again with bankers, while Emirati authorities had also started allowing some 20,000 Iranian residents who were outside the country when the war began to return to the UAE.
Iran denies launching missiles
Tehran has rejected the UAE’s accusation, with Iranian Foreign Ministry spokesperson Esmaeil Baghaei describing the allegation as unfounded and harmful to regional efforts to rebuild trust.Baghaei “completely rejected” the UAE’s claim and expressed regret over the accusations against Iran, according to a statement issued by the Iranian Foreign Ministry.“This behaviour is contrary to the principle of good neighbourliness and disrupts ongoing efforts to strengthen trust between regional countries and prevent the escalation of insecurity in the region,” Baghaei said.The Iranian Foreign Ministry spokesperson also called on regional countries to refrain from making “baseless accusations” against Tehran.“The Foreign Ministry spokesman called on all regional parties to refrain from making baseless accusations against the Islamic Republic of Iran, considering the existing complexities due to the ongoing evils of the US and the Zionist regime against regional peace and security, especially the history of numerous false flag operations,” he said.Iran’s denial came shortly after the UAE defence ministry said its air-defence systems had detected the two ballistic missiles.“The first fell outside the country’s territorial waters, while the second fell within its territorial waters,” the UAE Ministry of Defence said in a post on X.The UAE military said its forces remained on high alert and were prepared to respond to threats against the country’s security and sovereignty.
Missile incident threatens fragile UAE-Iran thaw
The latest confrontation comes after more than two months of efforts by Abu Dhabi and Tehran to reduce tensions that had escalated sharply following the US and Israeli war against Iran that began on February 28.During the conflict, Iran launched repeated missile and drone attacks against neighbouring Gulf states, including the UAE, accusing them of enabling US and Israeli military operations.The UAE was among the Gulf states most heavily targeted, sustaining almost 3,000 missile and drone attacks. Abu Dhabi also carried out scores of strikes against Iran, taking a more hawkish position towards Tehran than several of its Gulf neighbours.Tensions subsequently eased after Washington and Tehran reached a memorandum of understanding in June. However, the agreement began to unravel in early July, after which Iran shifted much of its military focus towards Bahrain, Kuwait and Jordan.In recent months, the UAE had sought to rebuild diplomatic and economic channels with Iran while maintaining close military ties with Israel and the United States. Emirati officials have repeatedly said they want to avoid being drawn further into a wider regional conflict.That balancing act has come under growing pressure in recent weeks.
Strait of Hormuz adds pressure
The latest missile incident comes amid a broader confrontation over the Strait of Hormuz, one of the world’s most important maritime routes for oil and natural gas shipments.The UAE accused Iran earlier this month of attacking ships operated by Abu Dhabi National Oil Company in the strategic waterway. Tehran has also maintained restrictions on traffic through the strait while issuing increasingly aggressive military rhetoric.A separate maritime incident was reported on Tuesday when an unidentified projectile struck a ship as it sailed out of the Strait of Hormuz off the coast of Oman. The United Kingdom Maritime Trade Operations centre said the strike damaged the vessel’s engine room and caused a casualty, while the Omani Coast Guard assisted other crew members.Another cargo vessel was struck by multiple projectiles about 40 nautical miles, or 74 kilometres, southeast of Mokha in Yemen and was declared a “constructive total loss”, according to the British maritime monitoring agency. The agency did not identify the projectiles or those responsible.The incidents have added to concerns over the security of commercial shipping through the Strait of Hormuz and the wider Red Sea region, both critical routes for global trade.
Trump threatens Oman over Iran deal
The maritime tensions have also drawn Oman into a dispute between Washington and Tehran over the future of shipping through the Strait of Hormuz.US President Donald Trump threatened Oman after becoming dissatisfied with an emerging agreement between Muscat and Tehran aimed at managing ship traffic through the strategic waterway, according to two regional officials cited by The Associated Press.The officials said the Trump administration had objected to elements of the proposed agreement, including joint Iranian and Omani management of the exit route from the strait and a system under which vessels would voluntarily pay fees linked to security and maritime environmental protection.Trump on Monday threatened to bomb Oman as it worked with Iran on an agreement intended to reopen the strait and potentially allow Washington and Tehran to resume negotiations aimed at ending the conflict.He later posted a map on social media depicting the Strait of Hormuz as US territory. Trump had previously floated the idea during an Oval Office exchange, saying, “I like the idea of declaring it a territory,” without providing further details.The White House referred to Trump’s earlier Oval Office remarks when asked about the latest comments and declined to provide additional details.Iranian Deputy Foreign Minister Kazem Gharibabadi responded to Trump’s remarks on social media.“Just as Trump correctly wrote the name of the eternal Persian Gulf, his delusion regarding the Strait of Hormuz will soon either be corrected, or we will correct this deluded man’s delusions for him,” Gharibabadi wrote on X.Trump has previously threatened Oman over its dealings with Iran. In May, he told reporters during a Cabinet meeting that Oman “will behave just like everybody else, or we will have to blow them up.”
Iran says Strait will remain closed
Iran has maintained that the Strait of Hormuz will not fully reopen until Washington meets its conditions, including commitments related to sanctions, frozen assets and military operations.“Until the United States fulfills its commitments under the agreement, including lifting the blockade, releasing frozen assets, lifting oil sanctions, ending threats and military operations on all fronts, and implementing the other conditions to which it committed, the Strait of Hormuz will not reopen,” Iranian parliamentary speaker and former US-Iran negotiator Mohammad Bagher Qalibaf said.Trump, however, said on Tuesday that the United States had no planned talks with Iran and insisted that the strait was “open and operating”, despite limited maritime traffic and reports of fresh attacks.He also said the US blockade of the waterway remained “in full force and effect” and claimed that all water mines had been removed.Egypt has backed the Iranian-Omani negotiations, saying a deal could help create conditions for Washington and Tehran to return to talks.The Egyptian Foreign Ministry said the agreement could pave the way for a “comprehensive and permanent deal that addresses all concerns and enhances regional security and stability.”
UAE also condemns Israeli strikes in Syria
The UAE’s latest move against Iran came on the same day Abu Dhabi condemned Israeli airstrikes on the Abu al-Duhur Military Airbase in Syria’s Idlib Governorate.The UAE Ministry of Foreign Affairs said it “condemns in the strongest terms” the Israeli raids and rejected any action that could threaten Syria’s security, stability and territorial integrity.“The UAE categorically rejects any infringement on the sovereignty of Syria or threats to its security and stability,” the ministry said.The UAE described Israel’s continued attacks on Syrian territory as a “flagrant violation of international law” and the 1974 Disengagement Agreement between Syria and Israel.“The Ministry reaffirmed the UAE’s unwavering position in support of Syria’s stability and territorial integrity, underscoring solidarity with the Syrian people and support for all efforts aimed at fulfilling their aspirations for security, peace, dignity, peaceful coexistence, and development,” it said.The UAE also called for international action to prevent further Israeli attacks and contain the escalation.“The UAE called on the international community to take immediate action to halt the repeated attacks on Syrian territory and to stop the escalation and any actions that could heighten regional tensions and threaten regional and international peace and security,” the statement concluded.The UAE statement followed reports that Israeli forces had carried out four airstrikes on the Abu al-Duhur airbase. The attack was reportedly the first against the facility since the fall of former Syrian President Bashar al-Assad’s government in December 2024.Israel said the strikes were linked to concerns over a possible change in the security arrangement with Syria. Israeli Prime Minister Benjamin Netanyahu’s office said Israel and Syria had agreed to maintain a security “status quo” and accused Syria of approaching a breach of that understanding by permitting Turkish troops to deploy at an airbase near Aleppo.“Israel and Syria agreed to a status quo in security matters, which Syria was on the verge of breaching by permitting Turkish troops to deploy at an airbase near Aleppo,” Netanyahu’s office said.“Israel will not tolerate threats to its security, and would welcome a return to the status quo,” it added.US Special Presidential Envoy for Syria and Iraq Tom Barrack also criticised the strikes.“We are deeply concerned that the confirmed Israeli airstrikes on Abu al-Duhur Airbase constitute an unnecessary escalation that does not advance regional stability,” Barrack said.Syria accused Israel of violating its sovereignty, while Jordan and Qatar also condemned the strikes. Turkey called on the international community to respond.The developments leave the UAE facing renewed security pressure on multiple fronts, with its suspension of economic ties with Iran threatening a fragile diplomatic thaw just as tensions over the Strait of Hormuz and wider regional military activity are intensifying.
