UAE suspends trade and financial transactions with Iran

The UAE has immediately halted "all trade, commercial exchange and financial transactions with Iran" due to the threat it poses to the region.

The decision follows a spate of attacks on UAE-owned tankers and Tehran's rejection of talks with the US. Shortly before the statement, Iran fired two missiles at the UAE. One landed in Emirati territorial waters, while the second landed outside its territory.

Ms Al Hameli said that "in light of regional escalations that undermine regional and international peace and security", activities would be suspended until further notice.

"The United Arab Emirates remains firmly committed to safeguarding the integrity of the international financial system, in line with international law and the highest global standards," she said.

The announcement represents a notable shift in the economic relationship between the two neighbours, which have maintained substantial commercial ties despite longstanding political tensions in the region.

In May 2024, the countries held their first Joint Economic Committee meeting in Abu Dhabi.

Trade between the two countries has remained significant, with the UAE serving as an important trading partner for Iran. According to Iranian customs data, bilateral non-oil trade was worth tens of billions of dollars in recent years.

The UAE has been the target of many attempted attacks originating from Iran amid its war with the US.

At least a dozen people have been killed in the UAE during the conflict and more than 200 injured.