UAE cuts trade and financial ties with Iran after missile scare
What's new: The halt severs a major commercial channel for sanctioned Iran, though flights between the countries were still operating Wednesday.
The United Arab Emirates halted all trade, commercial exchanges and financial transactions with Iran after accusing Tehran of firing two ballistic missiles toward the country and its shipping lanes. Abu Dhabi said one missile fell outside UAE territorial waters and the other fell within them, later describing the salvo as a threat to maritime navigation. Iran rejected the allegation. The move sharpens pressure on one of Iran’s main trading partners and follows weeks of attacks on tankers linked to state oil company ADNOC. The UAE had not reported an Iranian missile aimed at its territory since May, after earlier waves of strikes during the regional war. Despite the break in economic ties, flights between the two countries continued on Wednesday.