UAE halts Iran trade as Gulf tensions widen

The United Arab Emirates halted all trade and financial dealings with Iran after accusing Tehran of firing ballistic missiles at shipping in the Gulf, a charge Iran denied as the wider U.S.-Iran conflict continued to disrupt traffic through the Strait of Hormuz.

“All trade, commercial exchanges and financial transactions with Iran have been halted until further notice,” the UAE Ministry of Foreign Affairs said, citing “escalations that undermine peace and security in the region.” Afra Al Hameli, the ministry’s communications director, said the suspension applied to all trade, commercial exchanges and financial transactions.

The UAE Ministry of Defence said its air defenses detected two ballistic missiles launched from Iran, one of which fell outside the country’s territorial waters while the other landed within them. In a later statement, the ministry said assessments showed the missiles were “targeting maritime navigation” and fell into the sea.

Iran rejected the accusation. Foreign Ministry spokesman Esmaeil Baghaei called it “baseless,” Reuters reported. Al Jazeera reported that Baghaei also suggested the incident was a “false flag operation” amid the war launched by the United States and Israel against Iran, and said the accusation “contradicts the principle of good neighbourliness.”

The embargo came a day after a 60-day window for U.S.-Iran peace talks expired without a breakthrough. President Trump said Tuesday that no dialogue with Iran was taking place and that no talks were scheduled. Jared Kushner, Trump’s son-in-law and envoy, told Fox News on Monday that Iran was “not showing any interest” in striking a deal that “makes sense” for the United States.

Iranian Foreign Minister Abbas Araghchi said Tehran was not seeking a ceasefire, only an end to the war. “We told the mediators that we will not accept a ceasefire; the war must come to an end,” Araghchi told the semi-official Fars News Agency. “We were saying that the war must end in such a way that it will not be repeated.”

The Strait of Hormuz remains a central flashpoint. A commercial vessel was struck Tuesday by an “unknown projectile” while transiting the strait, according to the British military, causing one casualty and damaging an engine room. Shipping data platform Kpler said confirmed crossings through the strait fell 19.5% last week to 95 transits, with only three vessels passing through Sunday. Kpler said the ships used the Iranian-designated route, with no crossings recorded through Omani routes.

The UAE said the latest missile incident was the first such warning to its territory in months. CBS News reported that when the Middle East war began on Feb. 28, the UAE bore the brunt of Iranian attacks, with nearly 3,000 missiles and drones directed at the country. Al Jazeera reported a lower figure for the war’s first six weeks: more than 530 ballistic missiles, dozens of cruise missiles and more than 2,200 drones aimed at what Iran described as U.S. assets.

The dispute has also drawn in Oman. CBS News reported, citing two regional officials, that Trump threatened to bomb Oman because he opposed parts of a yet-to-be-announced Omani deal with Iran to manage ship traffic through the Strait of Hormuz, including joint Iranian and Omani management of the exit route and voluntary fees from vessels.

Diplomatic and legal pressure on Iran also widened Tuesday. France said it would expel two Iranian diplomats after Iran barred two French diplomats from returning to Tehran. The U.S. Justice Department announced a superseding indictment charging 17 Iranians with a cyber piracy campaign on behalf of the Islamic Revolutionary Guard Corps, including alleged attacks on universities, companies, government agencies and HBO.