After missile threat, UAE halts all trade, financial ties with Iran ‘until further notice’

The United Arab Emirates has halted all trade, commercial exchanges and financial transactions with Iran, its foreign ministry said Wednesday.

Afra Al Hameli, director of the Strategic Communications Department at the UAE Ministry of Foreign Affairs, said the measures would remain in place "until further notice".

The announcement came hours after the UAE said its air defences detected two ballistic missiles launched from Iran.

One missile fell outside UAE territorial waters while the second landed inside the country's territorial waters, the UAE defence ministry said.

An assessment found that both missiles had been directed at maritime navigation and fell into the sea, the ministry said, adding that there were no casualties or damage.

The incident followed a brief emergency warning to residents over a possible missile threat.

"Due to the current situation, potential missile threats, immediately seek a safe place in the closest secure building," the UAE Interior Ministry said in a phone alert that was later lifted.

It was the first such warning since July and the latest in a series of alerts issued during the conflict.

Iranian Foreign Ministry spokesman Esmaeil Baqaei on Wednesday rejected the UAE's assertion that Tehran had launched a missile towards its territory.

Baqaei described the allegation as unfounded and said such claims ran counter to good-neighbourly relations and efforts to build trust among regional countries.

He urged regional states to refrain from what he called baseless allegations against Iran, citing the "complex regional circumstances" created by continued US and Israeli activities.

The Iranian spokesperson also referred to what he described as a history of alleged false-flag operations in the region.

The UAE foreign ministry said its decision to halt economic transactions with Iran was linked to regional escalations that undermine regional and international peace and security.

Al Hameli said the UAE remained committed to dialogue, cooperation and regional integration as means of promoting peace, stability and prosperity.

She also said the UAE was committed to safeguarding the integrity of the international financial system and complying with international law and global standards.