UAE severed trade ties with Iran after missile threat
The United Arab Emirates has halted all trade, commercial, and financial operations with Iran until further notice. The decision was made after the UAE authorities reported the launch of two ballistic missiles from Iranian territory toward the country.
According to the Financial Times, the UAE Ministry of Defense stated that air defense systems detected two ballistic missiles launched from Iran on August 18. Due to the threat, residents of the country received an emergency alert on their phones.
According to the Emirati defense ministry's assessment, the missiles were aimed at maritime shipping. One of them fell into the sea outside the UAE's territorial waters, the second within the country's territorial waters.
After the incident, the UAE Ministry of Foreign Affairs announced a de facto freeze of economic relations with Tehran.
"In light of the regional escalation that undermines regional and international peace and security, all trade, commercial exchange, and financial operations with Iran have been stopped until further notice", the Emirati authorities' statement said.
Iran denied involvement in the missile launches. Iranian Foreign Ministry spokesman Esmaeil Baghaei called the accusations contrary to the principle of good neighborliness and harmful to attempts to restore trust between the countries of the region.
The current incident threatens to derail the gradual restoration of relations between the UAE and Iran, which had been ongoing for more than two months. Following the memorandum between Washington and Tehran in June, Abu Dhabi began restoring diplomatic and economic channels with Iran.
In particular, trade between Dubai and Iranian ports partially resumed, and some flights from Iran returned. The UAE authorities also began allowing the return of about 20,000 Iranian citizens with Emirati residence permits who were outside the country at the start of the war.
At the same time, relations have been deteriorating again in recent weeks. The UAE accused Iran of attacks on vessels linked to the state oil company Abu Dhabi National Oil Company in the Strait of Hormuz. Back in July, the UAE Foreign Ministry reported strikes on two Emirati oil tankers and called the attacks on commercial shipping a direct threat to regional and global energy security.
According to the Financial Times, during the hostilities the UAE has become one of the main targets of Iranian attacks among Arab US allies. Since the start of the war, the Emirates have suffered nearly 3,000 missile and drone attacks. The UAE has also conducted strikes on Iran in response.
The current escalation is particularly important due to the UAE's role as one of the main trade and financial centers of the Persian Gulf, as well as due to the situation in the Strait of Hormuz - a key route for global energy exports.
Based on materials from: Financial Times, UAE Ministry of Foreign Affairs
