
The decision follows missile threats targeting the UAE, while Abu Dhabi says it remains committed to dialogue, regional cooperation and international law.
The United Arab Emirates has halted all trade, commercial exchanges and financial transactions with Iran until further notice, marking a significant development in relations between the two neighbouring countries.
The UAE Ministry of Foreign Affairs announced the decision amid heightened regional tensions and a sharp deterioration in the Middle East security situation. The ministry said the suspension was necessary against the backdrop of regional escalations that are undermining peace and security in the region and internationally.
Afra Al Hameli, Director of the Strategic Communications Department at the UAE Ministry of Foreign Affairs, announced the move while rejecting what she described as allegations concerning the current status of economic relations between the UAE and Iran.
“All trade, commercial exchanges, and financial transactions with Iran have been halted until further notice,” the ministry said in its statement.
UAE suspends economic ties with Iran
The suspension covers trade, commercial exchanges and financial transactions between the UAE and Iran. The decision represents a major shift in economic relations between the two countries, which have historically maintained substantial commercial links despite longstanding political and regional tensions.
The UAE has traditionally been an important commercial and financial hub for businesses connected to the wider region. The latest announcement therefore represents a significant development for companies and traders involved in UAE-Iran economic activity.
Despite the decision to suspend economic ties, Al Hameli reiterated that the UAE remains committed to dialogue, cooperation and greater regional integration.
She described dialogue and cooperation as essential tools for promoting peace, stability and prosperity across the region.
The UAE also stressed its commitment to protecting the integrity of the international financial system. According to the Ministry of Foreign Affairs, the country’s policies will continue to comply with international law and the highest global standards.
Decision follows missile threats
The announcement comes after a sharp escalation in regional security tensions.
On Tuesday, the UAE issued emergency alerts to residents and citizens following what authorities described as potential missile threats targeting the country.
The National Emergency Crisis and Disaster Management Authority (NCEMA) said UAE air defence forces had detected a missile threat targeting the country. Residents were instructed to seek shelter in a safe place.
A few minutes later, another safety alert was issued indicating that the immediate situation had returned to normal.
The UAE Ministry of Defence subsequently said that its air defence systems had detected two ballistic missiles fired from Iran towards the country.
According to the ministry, the first missile landed outside UAE territorial waters, while the second came down within the country’s territorial waters.
The missile alerts added to concerns over the rapidly changing regional security environment and preceded the UAE’s announcement regarding the suspension of economic relations with Iran.
Wider regional implications
The UAE’s decision is likely to have broader economic and diplomatic implications given the historically important commercial relationship between the two countries.
The suspension of trade and financial transactions signals that security considerations have taken priority over existing economic links as regional tensions intensify.
At the same time, the UAE’s emphasis on dialogue and regional integration indicates that Abu Dhabi is continuing to leave room for diplomatic engagement despite the suspension.
The government has also linked its approach to the protection of the international financial system and compliance with international law, signalling that its economic measures are being framed within wider international standards.
For businesses and traders, the immediate impact will depend on how the suspension is implemented and how long it remains in place. The UAE government has not indicated a specific end date, stating that the measures will remain effective until further notice.

The latest move comes at a particularly sensitive moment for the Gulf, with missile threats and wider regional instability increasing pressure on neighbouring states to strengthen security measures.
For now, the UAE has made clear that commercial and financial dealings with Iran are suspended, while maintaining that dialogue, cooperation and regional integration remain important to achieving long-term peace and stability.
UAE halts all trade, commercial exchanges and financial transactions with Iran amid rising regional tensions and missile threats targeting the country.