The United Arab Emirates has suspended trade, commercial activity and financial transactions with Iran as tensions in the Gulf continue to rise. The decision was announced on Tuesday, with the UAE saying the measures would remain in force until further notice.

UAE Foreign Ministry communications director Afra Al Hameli said, ‘In light of regional escalations… all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice.’

The announcement came against the backdrop of growing security concerns and fresh allegations involving Iranian missiles.

Missile alert sent to UAE residents

Almost two hours before the UAE’s first statement, residents received a brief emergency alert warning of a possible missile threat.

The Interior Ministry told residents, ‘Due to the current situation, potential missile threats, immediately seek a safe place in the closest secure building.’

The warning was later withdrawn. It was the first such alert since June, when a false alarm was issued, followed by another alert in July over an attack that ultimately did not reach UAE territory. The previous missile warning before these incidents had been issued in early May.

UAE accuses Iran of targeting Gulf shipping

The UAE later alleged that Iran had launched two ballistic missiles towards the country’s maritime area. According to the UAE Foreign Ministry, one missile landed outside the country’s territorial waters, while the other came down inside them.

The ministry later said, ‘Assessments carried out showed that the two ballistic missiles detected coming from Iran were targeting maritime navigation and fell into the sea.’

The claims have added another layer of tension to an already sensitive situation in the Gulf, where shipping routes remain crucial to regional trade.

Tehran rejects UAE’s missile allegations

Iran has denied the UAE’s claims. Iranian Foreign Ministry spokesman Esmaeil Baqaei ‘categorically rejected the United Arab Emirates’ claim that Iran had launched a missile toward that country’, describing the allegation as damaging to regional trust and efforts aimed at improving security.

The dispute comes after state-owned oil company ADNOC’s tankers were repeatedly targeted in recent weeks.

Strait of Hormuz remains key flashpoint

The latest developments also put attention on the Strait of Hormuz, a vital shipping route through which vessels leaving UAE ports must pass to exit the Gulf.

Iran has warned that the strait will remain closed until it reaches a peace agreement with the United States. The UAE had previously faced the heaviest impact of Iranian attacks after the Middle East war began on February 28, with nearly 3000 missiles and drones directed at the country.

A memorandum of understanding between the two sides took effect in June but has since collapsed. Since then, the UAE had reported no attacks, unlike several other Gulf states.