UAE suspends trade and financial ties with Iran after missile launch

2026-08-19

Trade with Iran suspended

The United Arab Emirates said on the 19th it would temporarily suspend trade and financial transactions with Iran, in retaliation for Iran's launch of two ballistic missiles on the 18th. Concern is growing that military conflict in the Middle East Gulf will intensify further.

Missile exchange

The UAE said on the 18th that two ballistic missiles were launched from Iran toward the UAE and that air defense systems detected them. It said the attack appeared to target maritime traffic, with one missile landing outside territorial waters and the other inside territorial waters.

According to Reuters, it was the first attack on the UAE by Iran in about three months. In response, Iranian Foreign Ministry spokesman Baqaei denied that missiles had been fired at the UAE and called for restraint from baseless accusations.

Memorandum also expires

A memorandum reached by the U.S. and Iran in June aimed at ending fighting failed to have its 60-day negotiation deadline extended and effectively broke down. It included provisions to halt military operations and resume nuclear talks, but the deadline arrived without the divide over control of the Strait of Hormuz being bridged.

U.S. President Donald Trump said in a post on social media on the 18th that there were 'no ongoing discussions or dialogues with Iran, and none are scheduled,' signaling a desire to keep distance from the Iran issue. If the United States weakens its involvement in the Middle East, Iran's influence could rise relatively.

Iran has shown it is in a position to stop traffic through limited attacks on shipping. Iranian parliament speaker Ghalibaf said on the 18th that Iran would keep the Strait of Hormuz closed until the United States fulfills the memorandum's terms, including allowing exports of Iranian crude oil.

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