UAE suspends all trade and financial transactions with Iran

Published Aug 20, 02:49 PM UTC

The United Arab Emirates announced on Wednesday that it has suspended all trade, commercial exchanges, and financial transactions with Iran until further notice, citing escalations that undermine regional and international peace and security. The decision came hours after the UAE accused Iran of firing two missiles into its territory, a claim Iran's Foreign Ministry dismissed as 'baseless' and possibly a 'false flag operation.' Iranian General Ali Abdollahi subsequently warned countries on the southern Persian Gulf coast that any assistance to the US military would constitute participation in its war. Separately, President Donald Trump threatened severe economic consequences for any country providing a lifeline to Iran. The Wall Street Journal noted that the UAE is one of Iran's biggest economic lifelines, and Trump's effort to squeeze Iran depends heavily on Dubai. The New York Times reported it was unclear if the US played a role in the embargo decision, but it came hours after a call between Trump and the Emirati leader. If implemented broadly, the trade severance could significantly harm Iran's economy, though severing those links may be difficult and could hurt Dubai's role as a global commerce hub.