The UAE Ministry of Foreign Affairs announced early on Wednesday, August 19, 2026, that all activities, trade exchanges and financial transactions with Iran had been suspended until further notice. The decision follows a renewed escalation in regional tensions.

Afra Al Hameli, Director of Strategic Communications at the UAE Ministry of Foreign Affairs, rejected all claims concerning the state of economic relations between Abu Dhabi and Tehran. She said the UAE remained committed to dialogue, cooperation and regional integration as means of promoting peace, stability and prosperity across the region.

Referring to heightened tensions that she said had undermined regional and international peace and security, Al Hameli stressed that all activities, trade exchanges and financial transactions with Iran would remain suspended “until further notice”. She added that the UAE remained committed to safeguarding the integrity of the international financial system and complying with international law and the highest global standards.

The UAE Ministry of Foreign Affairs did not provide further details on how the decision would be implemented, when the restrictions would take effect, any possible exemptions, or the status of ongoing transactions and contracts.

The announcement comes amid a renewed rise in tensions between the two countries. The UAE Ministry of Defence said on Tuesday evening that it had detected two ballistic missiles launched from Iran which, according to its assessment, were targeting maritime traffic. Both missiles fell into the sea.

In recent days, the UAE has also blamed Iran for several attacks on vessels belonging to Abu Dhabi National Oil Company, ADNOC, in the Strait of Hormuz. It has called for the attacks to stop and for the waterway to be fully reopened. Tehran has not claimed responsibility for the attacks on the vessels.

The complete suspension of trade and financial relations also follows months of conflicting reports about financial dealings between the two countries. Reuters reported in June, citing unnamed sources, that the UAE had agreed to release between $10 billion and $20 billion for Iran and that part of the amount had been made available to Tehran. At the time, the UAE Ministry of Foreign Affairs categorically rejected the claims, including an alleged transfer of $3 billion, and said no frozen Iranian funds had been released or transferred through the UAE.

At the time of publication, Iran had not issued an immediate official response to the UAE’s decision.

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