Tensions in the Middle East have escalated further after the United Arab Emirates (UAE) announced the suspension of all trade activities, exchanges and financial transactions with Iran until further notice. The development comes after the UAE accused Tehran of launching missiles towards the territory, marking the first such incident reported since a strike on the Fujairah port on May 4. The UAE defence ministry on Tuesday said it had detected two ballistic missiles launched from Iran.

UAE Halts All Trade With Iran

In a statement, UAE’s foreign ministry stated that the decision to suspend trade activities with Iran comes in light of regional escalation that “undermine regional and international peace and security.” Earlier on Tuesday, residents in UAE received alerts on their phones, which advised them to move to safe locations amid drone threats. Authorities also reported sirens and loud explosions in Dubai moments after the warning was issued.

Tehran Calls Allegations ‘Baseless’

Condemning the missile launch, the UAE affirmed its full readiness to deal with any threats and firmly confront anything that aims to destabilise the state's security. However, Iran has rejected the accusations that it launched missiles towards the UAE. Iran's foreign ministry spokesperson Esmaeil Baghaei on Wednesday responded to UAE’s statement, calling the accusations as “baseless.”

According to a statement issued by the Iranian Foreign Ministry on its official Telegram channel, he expressed regret over the accusations against the Islamic Republic of Iran. “This behaviour is contrary to the principle of good neighbourliness and disrupts ongoing efforts to strengthen trust between regional countries and prevent the escalation of insecurity in the region,” Baghaei said. He further called on regional countries to refrain from making "baseless accusations" against Tehran.

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“The Foreign Ministry spokesman called on all regional parties to refrain from making baseless accusations against the Islamic Republic of Iran, considering the existing complexities due to the ongoing evils of the US and the Zionist regime against regional peace and security, especially the history of numerous false flag operations,” Baghaei added.

Trump Talks To UAE President

Meanwhile, amid escalating tensions, UAE President Sheikh Mohamed bin Zayed Al Nahyan received a phone call from US President Donald Trump. The two leaders discussed cooperation between Abu Dhabi and Washington, while also exchanging views on the latest developments in the Middle East.

Will Tensions Escalate In Middle East?

The missile launch comes as a 60-day window for the US-Iranian peace talks expired on Monday without a breakthrough. This raises fears of a new escalation in the conflict, which has disrupted shipping through the Strait of Hormuz since February. A day ago, Trump stated that no talks were taking place with Iran and insisted that the waterway was open, contradicting Tehran’s claim that the critical waterway remained shut to shipping.

He also shared an AI-generated image of the waterway being labelled as "New US Territory” on Truth social. Trump’s post came days after he announced that he would "soon" declare the Hormuz as part of US territory after defeating Iran.

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