Abu Dhabi, UAE – The UAE has announced it is imposing an indefinite trade embargo on Iran, with the Foreign Ministry saying Tehran is ‘undermining regional and international peace and security’.

The announcement follows an earlier statement by the Defence Ministry that it had detected two ballistic missiles launched from Iran towards the UAE.

Iran’s Foreign Ministry has rejected the accusations, calling these ‘baseless’ and describing the incident as a ‘false flag operation’.

In an interview with Al Jazeera, retired General Mark Kimmitt, a former US assistant secretary of state, said the UAE is the largest seller of imported goods to Iran, exceeding China and Türkiye, with one-third of Iran’s imports coming from there.

He said it could be “even more significant than the embargo being put on by the United States” and warned that Iran “might go to war with the UAE because of it.”

Trump posted on social media that the Strait of Hormuz is open, while the US naval blockade of Iran remains in place.

The UAE’s decision to suspend all financial and economic transactions with Iran has refocused the spotlight on fraught ties between the Gulf state and Iran.

The UAE was the Gulf state most heavily hit by Tehran during the early stages of the Middle East war. However, the last reported attack on UAE soil was the May 4 strike on Fujairah port, a key oil export hub.

The move by the UAE to sever commercial ties came after the latest ballistic missiles attack, an incident that marked the first time in months that residents received telephone alerts ⁠warning of possible threats.

In a statement, the Defence Ministry said the missiles targeted ‘maritime traffic’ based on its assessments. Both missiles fell into the sea, it said.

The UAE also sent a phone alert on Tuesday to residents stating that the situation was safe and people should resume normal activities after the earlier warning.

Committed to dialogue

Afra Al Hameli, Director of the Strategic Communications Department at the Ministry of Foreign Affairs, said the UAE was committed to dialogue and cooperation to advance peace, stability and prosperity in the region.

Afra said that in light of the regional escalations that undermine regional and international peace and security, all trade, ⁠commercial exchanges and financial transactions with Iran have been halted.

Anwar Gargash, diplomatic advisor to the UAE president, said in a post on X that rumours about the “provision of financial facilities to Iran” are “false and part of desperate media campaigns”.

The UAE was drawn into the wider war in the region which began in February with US-Israeli strikes on Iran. Tehran’s attacks on UAE soil stopped in May, while they persisted in neighbouring Kuwait and Bahrain. Attacks at sea on ⁠its vessels did not stop.

Rubio highlights Strait of Hormuz security in call with UAE official

US Secretary of State Marco Rubio spoke with the UAE’s National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan on Wednesday to discuss key regional security issues, according to State Department Spokesperson Tommy Pigott.

During the call, the two officials addressed the situation in Lebanon and discussed ongoing joint efforts ‘to hold Iran and its proxy groups accountable for continued attacks’.

Rubio also emphasised the critical importance of maintaining freedom of navigation through the Strait of Hormuz, according to Pigott.

Agencies