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The United Arab Emirates on Wednesday suspended all trade, commercial exchanges and financial transactions with Iran, citing rising regional tensions and concerns over threats to regional and international security.

UAE Foreign Ministry communications director Afra Al Hameli said the measures would remain in force “until further notice”. She also rejected allegations about the current status of economic ties between the two countries.

The announcement came shortly after the UAE accused Iran of launching two ballistic missiles towards the Gulf. The UAE later said its assessment showed that both missiles had been aimed at “maritime navigation” and fell into the sea.

UAE Cites Escalating Regional Tensions

“All trade, commercial exchanges, and financial transactions with Iran have been halted until further notice,” Al Hameli said. She added that the UAE remained committed to dialogue, cooperation and regional integration as ways of promoting peace and stability.

The UAE also reiterated its commitment to protecting the integrity of the international financial system in accordance with international law and the highest global standards.

Earlier, the UAE defence ministry said its air defence systems had detected two ballistic missiles launched from Iran. One missile fell outside the UAE’s territorial waters, while the other fell within them.

مديرة الاتصال الإستراتيجي في وزارة الخارجية: وقف جميع الأنشطة والتبادلات التجارية والمعاملات المالية مع إيران

Director of the Strategic Communications Department at MoFA: All Trade, Commercial Exchange, and Financial Transactions with Iran Halted pic.twitter.com/PQczXyDNRX

— MoFA وزارة الخارجية (@mofauae) August 18, 2026

UAE Says Missiles Targeted Maritime Navigation

A subsequent assessment by the UAE defence ministry concluded that both missiles had been directed towards maritime navigation and ultimately fell into the sea.

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

Iran had not immediately commented on the UAE’s allegations. Tehran has, however, warned that the Strait of Hormuz would remain closed until it reaches a peace agreement with the United States. The strategic waterway is a key route for shipping departing from UAE ports and the wider Gulf.

Tensions Rise In The Region Again

The latest measures represent a sharp escalation in tensions between the UAE and Iran. When the Middle East war began on February 28, the UAE said it had faced nearly 3,000 Iranian missiles and drones, more than any other country in the region.

The UAE later reported no attacks after a memorandum of understanding came into effect in June. That arrangement has since expired, while other Gulf states have continued to report attacks.