UAE imposes indefinite trade embargo on Iran over alleged missile attacks

The United Arab Emirates has imposed an indefinite trade embargo on Iran after accusing Iranian forces of firing two ballistic missiles at the country, an allegation Tehran denies.

"All trade, commercial exchanges and financial transactions with Iran have been halted until further notice," the UAE's Ministry of Foreign Affairs said.

In a statement early on Wednesday, the UAE's Ministry of Foreign Affairs said the decision was made in 'light of escalations that undermine peace and security in the region'.

The statement came after the UAE's Ministry of Defence said its air defences detected two ballistic missiles launched from Iran, with one falling outside the country's territorial waters and the other landing within them.

In a follow-up statement, the ministry said the missiles had been 'targeting maritime traffic' and promised to 'resolutely confront any attempt to undermine the security of the nation or maritime navigation in the region'.

Iran's Ministry of Foreign Affairs rejected the accusation as 'baseless', with spokesman Esmaeil Baghaei suggesting it was a 'false flag operation' amid the war launched by the United States and Israel against his country.

Baghaei warned the claim 'contradicts the principle of good neighbourliness' and urged regional parties to steer clear of what he called unfounded claims against Tehran, and argued that any honest assessment of the situation must also weigh the 'malicious actions' of the US and Israel.

In the first six weeks of the war, the UAE was hit by more than 530 ballistic missiles, dozens of cruise missiles and over 2,200 drones, according to figures compiled by Al Jazeera.

Retired US Brigadier General Mark Kimmitt, speaking to Al Jazeera, said: "In many ways, the embargo being put on by the UAE is even more significant than the embargo being put on by the United States."