The United Arab Emirates (UAE) has suspended all commercial, trade and financial transactions with Iran until further notice, the country's Ministry of Foreign Affairs announced, amid heightened regional tensions.

The ministry said all economic activities, commercial exchanges and financial dealings involving Iran would remain suspended pending a further announcement. No additional details were provided regarding the duration of the measure or possible exemptions.

Decision follows reported missile incident

The announcement came shortly after the UAE Ministry of Defense said it had detected two ballistic missiles launched from Iran toward maritime routes. According to the ministry, both missiles fell into the sea without causing casualties or damage to navigation.

The incident further heightened concerns over security in the Gulf, where tensions have escalated in recent months.

Regional tensions remain high

The latest move follows a period of heightened confrontation after the United States and Israel carried out joint strikes against Iran. Tehran subsequently launched retaliatory attacks targeting U.S. military facilities in several regional countries, including the UAE.

Although Iran and the United States signed a memorandum of understanding in mid-June through Pakistani mediation aimed at ending hostilities and pursuing a lasting peace agreement, recent security incidents have raised doubts about the durability of the ceasefire process.

The UAE's decision marks a significant escalation in its economic response to the ongoing regional crisis and could further affect trade and commercial activity across the Gulf.(ILKHA)