UAE Suspends Trade With Iran After Reported Missile Strikes ...Middle East

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Ships dock at the container terminal in the port of Khor Fakkan, in the United Arab Emirates, on July 14, 2026. —AFP via Getty Images

The country’s foreign ministry said the decision comes “in light of regional escalations that undermine regional and international peace and security.”

Read More: Trump Again Threatens to Bomb Oman

“The impact on the Iranian economy could be significant,” Simon Henderson, director of the Bernstein Program on Gulf and Energy Policy at the Washington Institute, tells TIME. “The UAE is one of the top non-oil trading partners with Iran.”

Iran’s dollar currently ranks as the least valuable currency in the world, and its government told a Russian news agency in April that the war has already cost it some $270 billion in direct and indirect damages.

The UAE has previously reported the detection of missiles coming toward it, most recently on July 12, when it confirmed that a missile fell outside of its borders.  

One drone, launched from the direction of the UAE’s western border, struck an electricity generator near the Barakah Nuclear Energy Plant on May 17. Its origin has not been confirmed and is under investigation.

Tehran resumed targeting U.S. allies in the Middle East, including Kuwait, Qatar, and Bahrain during the return to hostilities in early July, when negotiations based upon a Memorandum of Understanding collapsed. 

Where do peace plans between the U.S. and Iran stand?

President Donald Trump said Tuesday that “there are no talks or conversations going on, or scheduled,” between the U.S. and Iran. He also reaffirmed that the naval blockade on Iranian ports and vessels remains in place, amid ongoing claims that the Strait of Hormuz is “open and operating.”

Earlier this week, the President also threatened to “bomb the s---” of Oman, a U.S. ally and mediator between Washington and Tehran, should it “get in the way” of U.S. attempts to gain  effective international control of the Strait of Hormuz. 

Oman and Iran have reportedly been working toward an agreement to manage traffic through the Strait, which carries roughly a fifth of the world’s oil and gas supply. 

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