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UAE cuts ties after missiles
The United Arab Emirates announced it would suspend all trade, commercial exchanges, and financial transactions with Iran after Iran launched ballistic missiles toward the UAE, with the UAE Ministry of Foreign Affairs saying the decision came "in light of the recent escalation of tensions that undermine regional and international peace and security."
“the UAE will suspend all trade and commercial exchanges and financial transactions with Iran until further notice”
The UAE Ministry of Defense said it detected two ballistic missiles launched from Iran, with assessments indicating the missiles appeared to target maritime traffic and both falling into the sea.
The Associated Press reported the missile alerts triggered across the country on Tuesday night, urging residents to seek shelter, and said the UAE suspended all trade with Iran "until further notice" after saying it was attacked from that country.
The Hill reported the UAE said its air defense systems spotted Iranian ballistic missiles, with one falling outside the nation’s territorial waters and the other "fell well within its territorial waters."
Iran denies, UAE cites maritime
Iran’s Foreign Ministry spokesman Esmail Baghaei denied the UAE’s claim that Tehran had launched missiles at the Emirates, warning that "all parties in the region should refrain from baseless accusations."
The Associated Press quoted Mohammad Farzanegan, a Middle East economics professor at the University of Marburg in Germany, saying the UAE is "very important for Iran as a hub for re-export" and that Iran is "heavily dependent on the United Arab Emirates" for access to goods from third countries.
Al Jazeera reported the UAE’s Ministry of Foreign Affairs said "All trade, commercial exchanges and financial transactions with Iran have been halted until further notice," and said the UAE’s Ministry of Defence reported its air defences detected two ballistic missiles with one falling in the country’s territorial waters and the other outside.
CNBC said the UAE indefinitely suspended trade "in light of regional escalations that undermine regional and international peace and security," while also reporting that both missiles fell into the water and caused no damage or casualties, according to the UAE.
Pressure on Iran’s economy
The Associated Press said the UAE’s embargo could further isolate an Islamic Republic already suffering under sanctions and an American-led blockade, and it described the UAE as a hub that helps Iran absorb some impacts from sanctions.
“"In many ways, the embargo being put on by the UAE is even more significant than the embargo being put on by the United States,"”
BigGo Finance said the UAE served as a critical financial gateway for Iranian companies to export crude oil while circumventing Western sanctions, and it warned that if the trade suspension is strictly enforced, Iran faces the risk of losing access to essential goods including food and medicine.
Al Jazeera reported analysts saying Iran is heavily reliant on the UAE for critical imports and access to financial markets, and it quoted Mark Kimmitt saying, "In many ways, the embargo being put on by the UAE is even more significant than the embargo being put on by the United States."
The Maritime Executive said the UAE’s decision to suspend trade with Iran has significant ramifications for smuggling and money-laundering networks that keep Iran’s government running, noting that many transactions conduct business within the UAE's opaque "free zones."
