The United Arab Emirates suspended all trade with Iran on Wednesday after it said it had come under renewed fire from the country, which is suffering under US sanctions and a blockade.
Incoming ballistic missile fire triggered nationwide warnings Tuesday night for UAE residents to seek shelter, the first time in weeks such an alarm had sounded.
Early in the conflict, the UAE regularly came under intense fire from Iran, and most trade between the countries, which had once been important trading partners, ground to a halt. In late June, as hostilities eased, some maritime trade resumed, Iran’s state-run IRNA news agency reported.
More time and data are needed to evaluate the full effect of the war on Iran-UAE trade, but the UAE is clearly a critical partner for Iran, said Mohammad Farzanegan, a professor of Middle Eastern economics at Germany’s University of Marburg.
Beyond the trade in domestically produced goods, “the UAE has been very important for Iran as a re-export hub and has helped the country absorb some of the shocks caused by sanctions,” he told The Associated Press.
“Iran therefore depends heavily on the UAE not because the UAE itself produces one-third of Iran’s imports, but because it serves as a major gateway for Iran to access third-country goods and commercial infrastructure.”
Following the news that two ballistic missiles had been fired toward the UAE, both of which splashed down in the Persian Gulf late Tuesday, the Foreign Ministry said that while it remained committed to “dialogue, co-operation and regional integration,” it had decided to impose the punitive measures.
“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 ministry said in a statement.
The UAE’s Defense Ministry said assessments showed that the missiles targeted maritime traffic. It was not clear whether they targeted Emirati ships or the country’s territorial waters.
Iranian Foreign Ministry spokesperson Esmail Baghaei denied that Iran had launched any missiles toward the UAE.
