The United Arab Emirates suspended all trade, commercial exchanges, and financial transactions with Iran until further notice on August 18, 2026. This followed detection of two ballistic missiles launched from Iran targeting UAE maritime territory, with one missile falling inside UAE waters and the other outside its territorial waters, both in the sea [1, 2, 3, 4, 5, 6].
The UAE Ministry of Defence said, "The missiles had been targeting maritime traffic and we will resolutely confront any attempt to undermine the security of the nation or maritime navigation in the region" [4]. The missiles were assessed as aimed at Gulf shipping lanes, threatening maritime navigation [2, 4].
Afra Al Hameli, communications director for the UAE Foreign Ministry, said, "In light of regional escalations... all trade, commercial exchanges and financial transactions with Iran have been halted until further notice" [1]. This action marks an escalation following the missile detections and comes after the UAE had earlier recalled its ambassador to Iran and closed Iran-linked schools and a state-linked hospital in Dubai due to security concerns [1].
Iran categorically denied launching any missiles towards the UAE, calling the claims baseless and harmful to regional security. Iranian Foreign Ministry spokesman Esmaeil Baqaei "categorically rejected the United Arab Emirates’ claim that Iran had launched a missile towards that country" and urged all regional parties to avoid "baseless accusations" [1, 2, 3, 4]. He expressed regret over accusations, describing them as contrary to good neighborliness [3].
The missile attacks on August 18 are the first direct missile strikes on the UAE by Iran since May 2026. Before that, the UAE had endured over 530 ballistic missile strikes, dozens of cruise missiles, and more than 2,200 drones from Iran in the first six weeks of the Middle East conflict starting earlier this year [1, 4]. Tensions have continued to rise amid US and Israeli strikes on Iran, stalled peace talks, and a US naval blockade on Iranian ports [4, 7, 6].
The UAE accused Iran of attacking two ADNOC state-owned vessels recently in the Strait of Hormuz, although Iran has not claimed responsibility [4]. The UAE stressed its commitment to dialogue, regional integration, and upholding international financial standards despite tensions [3].
The UAE air defense systems responded swiftly to the missile threats detected on August 18 [2, 5]. The government has left the suspension in place "until further notice," signaling no immediate timetable for resuming trade relations with Iran [1, 3, 6].
