UAE halts all trade and financial dealings with Iran
Emirati Economy Cuts All Financial and Commercial Links to Tehran
Poinews.com – Following a renewed barrage of missiles aimed at its territory, the United Arab Emirates has suspended every form of trade, commercial exchange, and financial transaction with neighbouring Iran, effective immediately and until further notice. The move marks the most sweeping economic decoupling yet between the two Gulf neighbours since hostilities erupted.
Official Statement and Diplomatic Framing
Afra Al Hameli, who heads the Strategic Communications Department within the UAE Ministry of Foreign Affairs, delivered the announcement on Tuesday.
"In light of regional escalations ... all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice."
Al Hameli emphasised that Abu Dhabi remains dedicated to protecting the soundness of the global financial architecture, acting in accordance with international law and top-tier worldwide benchmarks. She pushed back against characterisations of the bilateral economic relationship and reaffirmed the Emirates' standing pledge to dialogue, mutual cooperation, and broader regional integration.
The Missile Incident That Triggered the Freeze
Earlier that same Tuesday, Abu Dhabi reported that Iran had launched two ballistic missiles toward the country. A subsequent clarification indicated the salvo was aimed at shipping rather than land targets. Both projectiles struck the sea; one landed within Emirati territorial waters. Tehran, for its part, denied ever aiming at the UAE. Iranian foreign ministry spokesperson Esmail Baghaei responded sharply:
"categorically rejected the United Arab Emirates' claim that Iran had launched a missile towards that country."
Wider War Context
The conflict ignited on 28 February when American and Israeli forces struck Iran. In retaliation, Tehran began daily missile and drone campaigns against targets across neighbouring states. The UAE, which hosts a substantial Iranian diaspora and had served as a key trading conduit for the sanctioned Iranian economy prior to the war, has been absorbing the fallout. Tuesday's trade freeze is the latest in a series of Emirati countermeasures: the ambassador was recalled early in the conflict, and Iranian-affiliated schools plus a hospital were shuttered.
The suspension, as worded, governs direct bilateral dealings. It does not clarify whether funds channelled through intermediary nations remain unaffected. In June 2025, the US Treasury's Financial Crimes Enforcement Network had alerted banks that Iranian networks routinely establish front companies in third countries, frequently exploiting free-trade zones with lenient incorporation rules. FinCEN noted that Iranian actors commonly operate general trading companies registered in commercial free zones in the UAE and in Hong Kong, bank in China via non-resident accounts, and conduct trade with counterparties concentrated in Singapore and Hong Kong.
Tehran's Warning to Gulf Hosts
Within hours of the Emirati announcement, Ali Abdollahi, Iran's armed forces chief of staff, issued a pointed caution to Gulf states. Speaking through the Mehr news agency, he warned that any logistical support or facilitation extended to what he called the "aggressor US military" would be treated as participation in the American operation.
"that any assistance or facilitation provided to the aggressor US military amounts to participation in the US military operation."
The Gulf region hosts both rotational and, in some cases, permanent American military installations, including within the UAE itself. Numerous Middle Eastern governments had declared since the war's outset that they would not permit US forces to use their soil as a launch platform. Abdollahi, however, questioned the sincerity of those assurances.
"It seems unlikely that such a large number of military aircraft, particularly refuelling aircraft, could be present at regional bases without knowledge of host countries."
He added that Gulf states "should know that we are fully aware of the situation."
Unconfirmed Strikes and Shipping Attacks
Press reports have indicated that Saudi Arabia, the UAE, Kuwait, and Bahrain have each hit targets inside Iran in retaliation for Gulf-directed attacks. The governments involved have largely denied involvement.
Meanwhile, vessels operated by ADNOC, the Emirati state oil company, have come under repeated fire in recent weeks. On 8 August the foreign ministry announced that a missile had struck an ADNOC carrier transiting the Strait of Hormuz. On 14 August it reported two additional ADNOC ships were targeted during passage through the same waterway. No lives were lost in either incident.
In both communiqués, Abu Dhabi branded the strikes a "flagrant violation" of the UN Security Council resolution guaranteeing freedom of navigation and declared that:
"targeting commercial shipping and using the Strait of Hormuz as a tool of economic coercion or blackmail represents acts of piracy by Iran's Revolutionary Guard Corps."
The ministry demanded that Tehran cease the attacks, pledge an immediate end to hostilities, and fully and unconditionally reopen the strait.
Strait Blockade and Diplomatic Stalemate
Iran has maintained a blockade of the Strait of Hormuz, the corridor through which vessels departing most UAE ports must pass. A framework agreement between Washington and Tehran aimed at reopening the waterway has since collapsed. On Monday, Jared Kushner — son-in-law and envoy to US President Donald Trump — stated that the two sides were engaged in "very positive and active conversations." On Tuesday, Trump
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