UAE halts all trade and financial transactions with Iran

Published Aug 20, 02:49 PM UTC

The United Arab Emirates announced a halt to all trade, commercial exchanges, and financial transactions with Iran until further notice, citing escalations that undermine regional and international peace and security. This came hours after the UAE accused Iran of firing two missiles into its territory, a claim Iran's Foreign Ministry called 'baseless' and possibly a 'false flag operation.' Iranian General Ali Abdollahi warned Gulf states that any assistance to the US military amounts to participation in its war. President Donald Trump threatened severe economic consequences for any country providing a lifeline to Iran. The Wall Street Journal noted the UAE is one of Iran's biggest economic lifelines, and the New York Times reported the embargo decision was announced hours after a call from Trump to the Emirati leader. If implemented broadly, the trade severance could significantly harm Iran's economy but may also hurt Dubai's role as a global commerce hub.