UAE imposes financial embargo on Iran over missile threat

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UAE imposes financial embargo on Iran over missile threat

Editorial Team

August 19, 2026

UAE imposes financial embargo on Iran over missile threat — A person walks past a sign at a currency exchange, as the value of the Iranian Rial drops, in Tehran, Iran., December 20, 2025. Photo: WANA/via Reuters

UAE suspends all financial ties with Iran until further notice

DUBAI,— The United Arab Emirates has halted all financial and economic dealings with Iran until further notice, pointing to a missile threat from Tehran that has renewed attention on the tense relationship between the two countries.

The UAE, a close U.S. ally, was hit hardest among Gulf states by Iran in the early days of the Middle East war.

Still, the most recent strike on UAE territory took place May 4, 2026, at Fujairah port, a major oil export hub.

The decision to cut business ties followed a statement from the UAE Defense Ministry saying it had tracked two ballistic missiles fired from Iran.

It was the first time in months that residents got phone alerts warning of a possible threat.

The ministry said the missiles were aimed at “maritime traffic,” based on its own assessment. Both missiles landed in the sea, it said.

On Tuesday, the UAE sent a follow-up alert telling residents the situation was under control and that they could return to normal activities.

Iran’s Foreign Ministry denied the UAE’s claim that the missiles targeted shipping lanes, calling it “baseless.”

UAE says it backs dialogue

Dubai, the UAE’s commercial center, remains one of Iran’s key economic lifelines.

Afra Al Hameli, director of the Strategic Communications Department at the UAE Ministry of Foreign Affairs, said the country remains committed to dialogue and cooperation to support peace, stability and prosperity in the region.

Al Hameli said that given recent regional escalation threatening peace and security, the UAE has suspended all trade, commercial exchange and financial transactions with Iran.

Anwar Gargash, Diplomatic advisor to the UAE President — Diplomatic advisor to the United Arab Emirates President Anwar Gargash, October 22, 2025. Photo: Reuters

Anwar Gargash, a diplomatic adviser to the UAE president, wrote on X that reports claiming the UAE gave “financial facilities” to Iran are false, calling them part of a “desperate media campaign.”

The UAE became involved in the broader regional war after U.S. and Israeli strikes on Iran began in February 2026.

Attacks on UAE soil by Iran stopped in May, though they continued in nearby Kuwait and Bahrain. Attacks on UAE vessels at sea did not stop.

In August, Abu Dhabi National Oil Company, one of the world’s largest energy producers, said it had been significantly affected by what it called unprovoked attacks on its staff and assets, while still trying to meet customer needs in a difficult environment.

ADNOC said several of its ships were hit by missiles and drones while crossing the Strait of Hormuz since the conflict began.

The missile launch blamed on Iran came just as a 60-day window for U.S.-Iran peace talks ended without progress, raising concern about renewed conflict that has disrupted shipping through the strait since February and shaken global markets.

Iran has not claimed responsibility for the ADNOC ship attacks.

Iran’s Revolutionary Guards have previously warned they may act against vessels crossing the strait if they are tied to Tehran’s rivals or ignore Iranian orders.

(With files from Reuters)