The United Arab Emirates suspends all trade with Iran following renewed ballistic missile fire in the Persian Gulf.
The United Arab Emirates has suspended all trade and financial transactions with Iran until further notice. The decision follows renewed ballistic missile fire from Iran, which triggered nationwide warnings for residents to seek shelter. While the UAE served as a major re-export hub for Iran, the move aims to punish the Islamic Republic for its recent hostilities. Iranian Foreign Ministry spokesperson Esmail Baghaei denied launching the missiles, while the UAE Defense Ministry stated the projectiles targeted maritime traffic in the Persian Gulf. The conflict has significantly impacted the Strait of Hormuz, a strategic waterway where Iran maintains a strategic advantage. President Trump insisted the strait was open and operating, though Iranian Deputy Foreign Minister Kazem Gharibabadi called him a deluded man. The embargo comes as the U.S. prepares to apply new economic pressure on Iran. The International Monetary Fund forecasts a 5.4% economic contraction for Iran this year, with inflation reaching nearly 70%.