The United Arab Emirates has suspended all trade, commercial exchanges and financial transactions with Iran until further notice. The Maritime Executive reported that the decision came after the UAE said two ballistic missiles had been launched from Iran toward maritime traffic near the country.
The UAE said its air defenses detected two missiles on Tuesday. One fell outside UAE territorial waters, while the other fell inside them. Both missiles landed in the sea, according to the UAE Ministry of Defense. Iran denied launching the missiles and called the UAE’s claim baseless.
The decision also follows recent attacks on vessels linked to UAE state oil company ADNOC. On August 14, the UAE accused Iran of attacking an ADNOC vessel in the Strait of Hormuz.
The trade suspension is important for shipping because the UAE is a major trade and re-export hub for Iran. The move could reduce cargo flows between the two countries and add more pressure to shipping in the Strait of Hormuz.
For shipowners and operators, the latest escalation means higher security risks and more uncertainty around one of the world’s key energy shipping routes.
