UAE suspends all trade, financial transactions with Iran

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 has denied .

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". "All trade, commercial exchanges and financial transactions with Iran have been halted until further notice," it added .

The statement came after the UAE's Ministry of Defence said its air defences detected two ballistic missiles launched from Iran on Tuesday, 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, arguing that any honest assessment of the situation must also weigh the "malicious actions" of the US and Israel .

The missile launch came as a 60-day window for US-Iranian peace talks expired without a breakthrough, raising fears of a new escalation in the conflict that has disrupted shipping through the Strait of Hormuz since February . Earlier, the UAE had accused Iran of attacking its state-owned ADNOC vessels while transiting the strategic waterway . Iran has not claimed responsibility for those attacks.

The UAE's interior ministry sent a phone alert to residents earlier on Tuesday warning of a missile threat, which was later lifted with a message that the situation was safe and people should resume normal activities .

Source: Al Jazeera