UAE halts all trade, financial dealings with Iran

ABU DHABI

The UAE's Foreign Ministry cited regional escalation undermining peace and security, with the missile strike marking the first such attack on the UAE since May (AFP file photo)

The United Arab Emirates suspended all trade with Iran on Aug. 19 after it said it had come under renewed fire from the country, a move that will further isolate the Islamic Republic, which is suffering under American sanctions and a blockade.

Incoming ballistic missile fire triggered nationwide warnings on Aug. 18 night for UAE residents to seek shelter, the first time in weeks such an alarm had sounded.

Early in the conflict, the UAE regularly came under intense fire from Iran, and most trade between the countries, which had once been important trading partners, ground to a halt. In late June, as hostilities eased, at least some maritime trade resumed, Iran’s state-run IRNA news agency reported. But it was not clear how much trade there was more recently.

Following the news that two ballistic missiles had been fired toward the UAE, both of which splashed down in the Persian Gulf late on Aug. 18, the Foreign Ministry said that while it remained committed to “dialogue, cooperation and regional integration,” it had decided to impose the punitive measures.

“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 ministry said in a statement.

The UAE’s Defense Ministry said assessments showed that the missiles targeted maritime traffic. It was not clear whether they directly targeted Emirati ships or the country’s territorial waters.
Iranian Foreign Ministry spokesperson Esmail Baghaei denied that Iran had launched any missiles toward the UAE.