UAE suspends all trade with Iran until further notice after accusing Tehran of firing ballistic missiles toward country

The United Arab Emirates halted all trade with Iran “until further notice” on Wednesday after accusing Tehran of firing ballistic missiles toward the country.The UAE imposed the punitive measure after two incoming ballistic missiles splashed down in the Persian Gulf on Tuesday night — triggering nationwide warnings and forcing residents to flee for safety for the first time in weeks.The Emirati Foreign Ministry then announced that the UAE will suspend all trade and financial transactions with Iran “until further notice,” while remaining committed to “dialogue, cooperation, and regional integration.”The Iranian Foreign Ministry, however, denied that Iran had launched any such missiles toward the UAE, according to ministry spokesperson Esmail Baghaei.The UAE regularly came under intense fire from the Islamic Republic early in the conflict, The move further economically isolates Iran, which is already suffering under US sanctions and a blockade.Before the war, the UAE was one of Iran’s biggest trade partners, providing more than 30% of its imports — valued at a whopping $21 billion — and acting as the destination for nearly 13% of the country’s exports.“The UAE has been very important for Iran as a re-export hub and has helped the country absorb some of the shocks caused by sanctions,” said Mohammad Farzanegan, a professor of Middle Eastern economics at Germany’s University of Marburg.Farzanegan, however, said the embargo carries the risk of causing “substantial damage” to the UAE as well.“As a relatively small country seeking to remain a regional hub for business and finance while attracting tourists and investors, the UAE depends heavily on regional stability,” he said.

“Any major conflict with Iran can therefore cause substantial damage to its economy.”The UAE and other nations in the region, including Kuwait and Bahrain, have condemned Iran for regularly attacking ships in the Strait of Hormuz to maintain control over the c...