UAE suspends trade with Iran after alleging missile fire

The United Arab Emirates has suspended trade with Iran following allegations that Iran fired missiles at the Gulf state. The suspension marks a significant escalation in diplomatic and economic relations between the two neighbours, triggered by claims made by the UAE defence ministry regarding an attack on its territory.

According to the UAE defence ministry, the weapons were targeting maritime traffic but fell into the sea. The ministry confirmed that the projectiles did not hit their intended targets, instead landing in the water surrounding the area. This incident has prompted immediate economic countermeasures from Abu Dhabi.

The move comes amidst heightened regional tensions, including disputes over the Strait of Hormuz. Tensions in the Middle East have escalated following Donald Trump’s assertion that the Strait of Hormuz will soon become United States territory. In response, Iran’s deputy foreign minister stated that the Strait "will remain Iranian", highlighting the deepening geopolitical standoff.

Oil prices have risen following attacks in the Red Sea and Gulf of Oman, adding pressure to global energy markets. The UAE’s decision to suspend trade occurs against this backdrop of volatility, with investors closely monitoring developments in the Gulf as they impact supply chains and commodity pricing.

The primary source for these allegations is a Financial Times report published on 18 August 2026. While the UAE defence ministry provided details on the trajectory of the weapons, the exact nature and extent of any near-misses or collateral damage are not detailed beyond the statement that they fell into the sea. The specific timeline of when the trade suspension was implemented is not provided in the source.