Restrictions Will Remain in Force Until Further Notice
The United Arab Emirates has suspended all trade exchanges, commercial cooperation and financial transactions with Iran. According to an official statement from the UAE Ministry of Foreign Affairs, the measure will remain in effect until further notice.
Afra Al Hameli, Director of the Strategic Communications Department at the ministry, attributed the decision to the deteriorating regional security environment.
“In light of regional escalations that undermine regional and international peace and security, all trade, commercial exchanges and financial transactions with Iran have been halted until further notice.”
The UAE also reaffirmed its commitment to dialogue, cooperation and regional integration. The statement did not announce a complete termination of diplomatic relations between the two countries.
Decision Followed a Missile Incident
The decision followed a statement by the UAE Ministry of Defence that two ballistic missiles launched from Iran had targeted maritime traffic. Both missiles fell into the sea. Iran rejected the accusation as baseless.
The escalation comes amid continuing tensions in the Strait of Hormuz. ADNOC has previously reported attacks on company vessels operating in the waterway, although Iran has not claimed responsibility for those incidents.
Impact on Trade and Logistics
The restrictions could affect bank settlements, trade finance, insurance payments, re-exports and cargo services between Iran and the UAE. The consequences may be particularly significant for Dubai, which has traditionally served as one of Iran’s most important commercial and financial gateways.
The practical scope of the suspension will depend on further implementing instructions from the UAE authorities. Officials have not yet clarified whether there will be a transition period, exemptions for humanitarian cargo or special arrangements for goods already in transit.
The suspension of economic transactions does not automatically mean that UAE ports or airspace have been closed. However, carriers, banks and shippers will need to verify whether contracts and payments involving Iranian counterparties can still be executed.
Read also: Gulf Stock Markets Decline Amid Escalating U.S.-Iran Tensions
