DUBAI – The United Arab Emirates’ decision to suspend all financial and economic transactions with Iran until further notice, citing a military escalation by Tehran with a missile threat, has refocused the spotlight on fraught ties between the major Gulf Arab oil producer and Iran.
The UAE, a close US ally and regional power, was the Gulf state most heavily hit by Tehran during the early stages of the Middle East war. However, the last reported attack on UAE soil was the May 4 strike on Fujairah port, a key oil export hub.
The move by the UAE to sever commercial ties came after its defence ministry said that it had detected two ballistic missiles launched from Iran, an incident that marked the first time in months that residents received telephone alerts warning of possible threats.
In a statement, the ministry said the missiles targeted “maritime traffic” based on its assessments. Both missiles fell into the sea, it said.
The UAE also sent a phone alert on Tuesday to residents stating that the situation was safe and people should resume normal activities after the earlier warning.
Iran’s foreign ministry rejected the statement by the UAE that its missiles targeted maritime traffic, describing it as “baseless.”
