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'Trade, commercial exchanges halted': UAE's response to Iran's latest missile attack | The Local News
A view of the Dubai city skyline. (AP Photo) The United Arab Emirates has suspended all trade, commercial exchanges and financial transactions with Iran after accusing Tehran of launching two ballistic missiles towards the Gulf state, dealing a fresh blow to efforts to ease tensions between the two countries.
The UAE defence ministry said its air-defence systems detected two ballistic missiles launched from Iran towards its territory on Tuesday. The incident triggered an emergency alert on residents' phones and was described as the first direct Iranian attack on the UAE since May.
The ministry later said its assessment indicated that the missiles had been targeting maritime traffic. One missile fell into the sea outside the UAE's territorial waters, while the other fell within them.
No damage or injuries were reported. UAE freezes economic ties with TehranFollowing the missile incident, the UAE foreign affairs ministry announced that it was halting economic engagement with Iran until further notice.
The decision threatens to reverse a gradual restoration of economic and diplomatic links between Abu Dhabi and Tehran. Trade between the UAE and Iranian ports had resumed in some areas, while certain Iranian flights to the UAE had also quietly returned.
The emergency alert issued on Tuesday was the first such warning in several months, apart from a false alert in June. Iran denies launching missilesIran has denied the UAE's accusation, with Iranian Foreign Ministry spokesperson Esmaeil Baghaei rejecting the claim and warning that such allegations could undermine regional efforts to rebuild trust.
“This behaviour is contrary to the principle of good neighbourliness and disrupts ongoing efforts to strengthen trust between regional countries and prevent the escalation of insecurity in the region,” Baghaei said. “The Foreign Ministry spokesman called on all regional parties to refrain from making baseless accusations against the Islamic Republic of Iran, considering the existing complexities due to the ongoing evils of the US and the Zionist regime against regional peace and security, especially the history of numerous false flag operations,” he said.
The UAE military said its forces remained on high alert and were prepared to respond to threats against the country's security and sovereignty. Missile attack threatens fragile UAE-Iran thawThe latest confrontation comes after more than two months of efforts by Abu Dhabi and Tehran to reduce tensions that had escalated following the US and Israeli war against Iran that began on February 28.
During the conflict, Iran launched repeated missile and drone attacks against neighbouring Gulf states, including the UAE, accusing them of enabling US and Israeli military operations. The UAE was among the Gulf states most heavily targeted, sustaining almost 3,000 missile and drone attacks.
Abu Dhabi also carried out scores of strikes against Iran, taking a more hawkish position towards Tehran than several of its Gulf neighbours. Tensions later eased after Washington and Tehran reached a memorandum of understanding in June.
However, the agreement began to unravel in early July, after which Iran shifted much of its military focus towards Bahrain, Kuwait and Jordan. In recent months, the UAE had sought to rebuild diplomatic and economic channels with Iran while maintaining close military ties with Israel and the United States.
Emirati officials have repeatedly said they want to avoid being drawn further into a wider regional conflict. That balancing act is now under growing pressure following the latest missile incident.
Strait of Hormuz tensions add to pressureThe confrontation also comes amid escalating tensions around the Strait of Hormuz, a crucial route for global oil and natural gas shipments. The UAE accused Iran earlier this month of attacking ships operated by Abu Dhabi National Oil Company in the strategic waterway.
Tehran has also maintained restrictions on traffic through the strait while issuing increasingly aggressive military rhetoric. A separate maritime incident was reported on Tuesday when an unidentified projectile struck a ship as it sailed out of the Strait of Hormuz off the coast of Oman.
The United Kingdom Maritime Trade Operations centre said the strike damaged the vessel's engine room and caused a casualty, while the Omani Coast Guard assisted other crew members. Another cargo vessel was struck by multiple projectiles about 40 nautical miles, or 74 kilometres, southeast of Mokha in Yemen and was declared a “constructive total loss”, according to the British maritime monitoring agency.
The agency did not identify the projectiles or those responsible. The incidents have added to concerns over the safety of commercial shipping through the Strait of Hormuz and the wider Red Sea region, both vital routes for global trade.
Trump tensions with Oman over Iran dealThe maritime crisis has also drawn Oman into a dispute between Washington and Tehran over arrangements for shipping through the Strait of Hormuz. US President Donald Trump threatened Oman after becoming dissatisfied with an emerging agreement between Muscat and Tehran aimed at managing ship traffic through the strategic waterway, according to two regional officials cited by The Associated Press.
The officials said the Trump administration objected to parts of the proposed agreement, including joint Iranian and Omani management of the exit route from the strait and voluntary fees on vessels linked to security and maritime environmental protection. Trump on Monday threatened to bomb Oman as it worked with Iran on an agreement intended to reopen the strait and potentially allow Washington and Tehran to resume negotiations aimed at ending the conflict.
He later posted a map on social media depicting the Strait of Hormuz as US territory. Trump had previously floated the idea during an Oval Office exchange, saying, “I like the idea of declaring it a territory,” without providing further details.
The White House referred to Trump's earlier Oval Office remarks when asked about the latest comments and declined to provide additional details. Trump has previously threatened Oman over its dealings with Iran.
In May, he told reporters during a Cabinet meeting that Oman “will behave just like everybody else, or we will have to blow them up.” “Until the United States fulfills its commitments under the agreement, including lifting the blockade, releasing frozen assets, lifting oil sanctions, ending threats and military operations on all fronts, and implementing the other conditions to which it committed, the Strait of Hormuz will not reopen,” Iranian parliamentary speaker and former US-Iran negotiator Mohammad Bagher Qalibaf said.
Trump, however, said on Tuesday that the United States had no planned talks with Iran and insisted that the strait was “open and operating”, despite limited maritime traffic and reports of fresh attacks. He also said the US blockade of the waterway remained “in full force and effect” and claimed that all water mines had been removed.
Egypt has backed the Iranian-Omani negotiations, saying an agreement could help create conditions for Washington and Tehran to return to talks. The Egyptian foreign ministry said the agreement could pave the way for a “comprehensive and permanent deal that addresses all concerns and enhances regional security and stability."
The latest developments leave the UAE facing renewed security pressure as its decision to suspend economic ties with Iran threatens to derail a fragile diplomatic thaw, while tensions around the Strait of Hormuz and wider regional military activity continue to intensify.
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