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UAE suspends trade with Iran: A costlier decision for Tehran

After new missile strikes off its coast, Abu Dhabi has broken with three decades of economic pragmatism toward the Islamic Republic.

UAE suspends trade with Iran: A costlier decision for Tehran

Iranian Foreign Minister Abbas Araghchi (left) welcomed by the United Arab Emirates Foreign Minister, Abdullah bin Zayed Al Nahyan, in Abu Dhabi, on May 12, 2025. (Photo: AFP)

Emirati diplomacy was clear and to the point: "In light of regional escalations threatening regional and international security and peace, all trade and financial transactions with Iran are suspended until further notice." This decision was made on Aug. 19, following two ballistic missile launches targeting maritime traffic off the Emirati coast and attributed to Tehran — which denies the accusation and claims it was a false flag operation. With no damages or injuries reported, this attack was the first in several weeks, at a time when a fragile de-escalation agreement remained in effect between the two countries, despite renewed hostilities between Iran and the United States.After having taken limited measures against Tehran in recent months, such as closing Iran-linked businesses or restricting visas, this time Abu Dhabi...
Emirati diplomacy was clear and to the point: "In light of regional escalations threatening regional and international security and peace, all trade and financial transactions with Iran are suspended until further notice." This decision was made on Aug. 19, following two ballistic missile launches targeting maritime traffic off the Emirati coast and attributed to Tehran — which denies the accusation and claims it was a false flag operation. With no damages or injuries reported, this attack was the first in several weeks, at a time when a fragile de-escalation agreement remained in effect between the two countries, despite renewed hostilities between Iran and the United States.After having taken limited measures against Tehran in recent months, such as closing Iran-linked businesses or restricting visas, this time Abu Dhabi...
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