ABU DHABI: The United Arab Emirates suspended all trade, commercial exchanges and financial transactions with Iran on Wednesday, Aug. 19, after its defense ministry detected two ballistic missiles launched from Iran, on Tuesday, raising fresh concerns about regional security and the safety of maritime traffic.
The UAE Foreign Ministry said the suspension would remain in place until further notice. It said the decision followed a regional escalation that it believes threatens regional and international peace and security.
Both missiles fell into the sea, according to the UAE. One fell outside the country’s territorial waters, while the other fell within them, no damage or injuries were reported in connection with the incident.
⚡️🇦🇪🇮🇷 UAE halts all trade with Iran after accusing it of launching missiles
The UAE Defense Ministry said its air defenses detected two ballistic missiles launched from Iran, the first falling outside its territorial waters and the second within them, with a phone alert also… https://t.co/YgTvmiIcDF
— Drop Site (@DropSiteNews) August 18, 2026
Iran rejected the UAE’s claims. Foreign Ministry spokesperson Esmaeil Baghaei described the allegations as “baseless” and called on regional countries to avoid making unsupported accusations against Tehran.
Baghaei also blamed continued actions by the United States and Israel for worsening regional tensions. He said any assessment of the situation should take those developments into account.
The missile incident came as tensions around the Strait of Hormuz remained high. The strategic waterway has faced major disruptions during the broader conflict involving Iran, the United States and Israel, affecting commercial shipping and raising concerns about regional trade and energy supplies.
The UAE had also recently accused Iran of attacking vessels operated by the Abu Dhabi National Oil Co. while they were traveling through the Strait of Hormuz. Iran has not claimed responsibility for those incidents. Reuters reported that the UAE had accused Iran of three attacks on ADNOC vessels within a week.
The latest development also follows an emergency alert sent to residents in the UAE on Tuesday warning of a possible missile threat. Authorities later told residents that the situation was safe and urged them to resume normal activities.
The suspension of trade and financial dealings marks another setback for economic relations between the UAE and Iran as regional tensions continue to rise.
The situation could also have wider consequences for businesses and shipping because the UAE is an important commercial hub in the Gulf, while the Strait of Hormuz remains a key route for global energy and maritime trade.
For now, the UAE’s economic restrictions on Iran remain in effect until further notice, while Tehran continues to deny responsibility for the missile incident.
