UAE suspends trade, financial dealings with Iran
What's the story
The United Arab Emirates has announced a suspension of all trade and financial dealings with Iran until further notice. The decision comes after two ballistic missiles were reportedly fired from Iran toward the UAE. The missiles fell into the sea, one in UAE territorial waters and the other outside them, the defense ministry said. The UAE's foreign ministry communications director Afra Al Hameli said this was done "in light of regional escalations that undermine regional and international peace and security."
Alert response
Iran denies firing missiles at UAE
A missile threat alert was sent to Dubai residents as the UAE air defense systems responded to the incoming missiles.
The interior ministry declared the situation safe soon after.
However, Iran has denied any involvement in firing missiles at UAE.
Iranian foreign ministry spokesman Esmail Baghaei called these accusations "baseless" and harmful to regional trust and security efforts.
"This behavior is contrary to the principle of good neighborliness and disrupts ongoing efforts to strengthen trust between regional countries," Baghaei said.
Escalating conflict
Missiles fired amid rising tensions
The missile incident comes on the heels of recent Iranian strikes allegedly targeting UAE-linked ships in the Strait of Hormuz.
The UAE had previously confirmed an attack by Iran in May when Tehran targeted US military bases in response to Donald Trump's actions against Iran.
Shipping through the Strait of Hormuz, a key oil artery, has also been affected, with several ADNOC vessels being struck recently.
Conflict fallout
US-Israeli war on Iran has disrupted shipping through Hormuz
The US-Israeli war on Iran, which started on February 28, has led to a sharp decline in shipping traffic through Hormuz.
Before this conflict, about a fifth of the world's oil and liquefied natural gas passed through this waterway.
Iran has since retaliated with missile strikes on US bases in the Gulf and targeted tankers bypassing its closure of the energy route.
Iran has warned that Hormuz will remain closed until it reaches a peace agreement with the US.