The United Arab Emirates, a key trading partner of Iran, is suspending all trade and financial transactions with the Islamic Republic until further notice.
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“In light of the regional escalations undermining regional and international peace and security, all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice,” the Emirati Foreign Ministry said in a statement late Tuesday.
Media reports said the statement was issued after the United Arab Emirates said two ballistic missiles targeting maritime navigation had fallen into the sea, while Iran denied launching the missiles.
The UAE is one of Iran’s largest trading partners, ranking second only to China. Trade between the two countries had expanded even as the US continued to tighten sanctions on the regime.
Last week, vessels belonging to the United Arab Emirates’ state-owned oil company were targeted by Iran while passing through the Strait of Hormuz, the Emirati state news agency said.
After the US and Israel launched a war against Iran in February, Tehran responded by firing missiles and drones at US allies in the region. The UAE was the most heavily attacked of all Washington’s allies, including Israel.
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