The United Arab Emirates has suspended all trade and financial transactions with Iran following recent security incidents in the Persian Gulf.

The United Arab Emirates announced on Wednesday that it has halted all trade and financial transactions with Iran until further notice. The decision marks a significant shift in relations for the UAE, which has historically maintained close economic ties with Tehran. Emirati officials stated the move is a response to regional escalations that threaten security, including recent allegations of Iranian attacks on maritime traffic in the Strait of Hormuz.

Recent Tensions and Security Concerns

The Emirati Foreign Ministry cited regional instability as the primary driver for the embargo. Last Saturday, the UAE accused Iran of attacking an Emirati oil tanker. On Tuesday, the UAE Defense Ministry claimed Iranian forces fired two ballistic missiles at maritime traffic, with one landing in Emirati waters, an allegation Tehran has denied. Since the start of the conflict, the UAE has reported over 2,700 ballistic missile and drone attacks from Iran, citing its status as a host to major U.S. military assets, including Al Dhafra Air Base.

Economic and Diplomatic Context

The trade suspension follows a series of earlier measures by the UAE, including the closure of Iranian-linked schools and a hospital in Dubai, as well as the cancellation of visas for some Iranian expatriates. In 2024, trade between the two nations reached approximately $28 billion. While some have accused Dubai of helping Iran evade sanctions, Anwar Gargash, a diplomatic advisor to the Emirati president, dismissed these claims as untrue. The announcement of the embargo occurred shortly after a phone call between U.S. President Donald Trump and Emirati President Mohammed bin Zayed.