UAE Suspends Iran Trade Amid Attacks   08/19 06:15

   The United Arab Emirates suspended all trade with Iran on Wednesday after it 
said it had come under renewed fire from the country -- a move that will 
further isolate the Islamic Republic, which is suffering under American 
sanctions and a blockade.

   DUBAI, United Arab Emirates (AP) -- The United Arab Emirates suspended all 
trade with Iran on Wednesday after it said it had come under renewed fire from 
the country -- a move that will further isolate the Islamic Republic, which is 
suffering under American sanctions and a blockade.

   Incoming ballistic missile fire triggered nationwide warnings Tuesday night 
for UAE residents to seek shelter, the first time in weeks such an alarm had 
sounded.

   Early in the conflict, the UAE regularly came under intense fire from Iran, 
and most trade between the countries, which had once been important trading 
partners, ground to a halt. In late June, as hostilities eased, at least some 
maritime trade resumed, Iran's state-run IRNA news agency reported. But it was 
not clear how much trade there was more recently.

   The UAE accuses Iran of firing missiles. Tehran denies that

   Following the news that two ballistic missiles had been fired toward the 
UAE, both of which splashed down in the Persian Gulf late Tuesday, the Foreign 
Ministry said that while it remained committed to "dialogue, cooperation and 
regional integration," it had decided to impose the punitive measures.

   "In light of regional escalations that undermine regional and international 
peace and security, all trade, commercial exchanges and financial transactions 
with Iran have been halted until further notice," the ministry said in a 
statement.

   The UAE's Defense Ministry said assessments showed that the missiles 
targeted maritime traffic. It was not clear whether they directly targeted 
Emirati ships or the country's territorial waters.

   Iranian Foreign Ministry spokesperson Esmail Baghaei denied that Iran had 
launched any missiles toward the UAE.

   As part of Iran's efforts to maintain a stranglehold over the Strait of 
Hormuz, it has regularly attacked ships attempting to use the waterway, 
including four tankers owned by Abu Dhabi's state-owned ADNOC oil and gas 
company over the past two weeks. None of the attacks caused any injuries, but 
they brought harsh condemnation from the UAE and others in the region, 
including Kuwait and Bahrain.

   Since the beginning of the conflict nearly 20 ADNOC vessels have been 
attacked by missiles and drones in the Strait of Hormuz, killing one person and 
wounding another 20.

   Iran's ability to control traffic through the Strait of Hormuz, through 
which a fifth of traded oil and natural gas passed during peacetime, has proved 
its biggest strategic advantage in the war. While the U.S. and Israel -- which 
launched the war on Feb. 28 -- have given various aims, including toppling 
Tehran's government and ending its nuclear program, the conflict has devolved 
into a fight over the strait.

   During the war, Iran has launched hundreds of ballistic missiles and 
thousands of drones in strikes that Tehran said were targeting American assets 
but hit buildings in Dubai and Abu Dhabi, Dubai's commercial airport, ports and 
energy infrastructure.

   Iran has accused the UAE and other U.S. allies in the Gulf of facilitating 
American military attacks on Iran, and Iran's Chief of Staff Gen. Ali Abdollahi 
on Wednesday issued a new warning to "countries on the southern shores of the 
Persian Gulf."

   "Any assistance or facilitation provided to the aggressor U.S. military 
amounts to participation alongside U.S. military forces," he said in a 
statement distributed by Iran's semiofficial Fars news agency.

   The UAE embargo could put new pressure on Iran

   Before the war, the UAE was one of Iran's biggest trade partners, providing 
more than 30% of its imports valued at some $21 billion, according to the World 
Trade Organization's latest figures from 2024. It was the destination for 
nearly 13% of its exports worth some $7 billion.

   The Emirati announcement comes as the U.S. prepares to apply new economic 
pressure on Iran.

   Speaking last week, Treasury Secretary Scott Bessent said the measures would 
be a combination of economic isolation and the continued American blockade of 
Iranian ports.

   The economic pressure follows the intense bombing campaign that targeted 
industrial and civilian infrastructure in addition to military targets. Already 
the International Monetary Fund forecasts inflation of nearly 70% this year in 
Iran and an economic contraction of 5.4%. Meanwhile, its rial currency has hit 
record lows.