Published: 11:57, August 20, 2026
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UAE halts trade with Iran over missile claims
By Cui Haipei in Dubai, UAE and Jan Yumul in Hong Kong

Deadlock persists as Trump denies talks amid Tehran's claims of 'begging' by US

Iranian Foreign Ministry spokesman Esmaeil Baghaei speaks at a weekly press conference in Tehran, Iran, Aug 17, 2026. (PHOTO/XINHUA)

The conflict between the United States and Iran has entered a new phase of political attrition as the United Arab Emirates on Tuesday announced the suspension of all trade and financial dealings with Iran after alleging that two Iranian missiles targeting maritime navigation fell into the sea, a claim immediately rejected by Tehran.

Tuesday's announcement marked the latest UAE countermeasure against Iran, following the recall of its ambassador earlier in the broader Middle East conflict. The move also came after months of relative calm inside UAE territory dating back to May.

"In light of regional escalations …all trade, commercial exchanges and financial transactions with Iran have been halted until further notice," said Afra Al Hameli, communications director of the UAE's Foreign Ministry, while reaffirming Abu Dhabi's commitment to dialogue-based solutions for regional peace.

READ MORE: US-Iran pact expires with no breakthrough

Abu Dhabi on Tuesday accused Tehran of firing two ballistic missiles toward the country, the first such reported incident since May. It later said the salvo was directed at shipping, but Tehran denied firing missiles at the neighbor.

"UAE air defenses detected two ballistic missiles launched from Iran toward the country, with the first falling outside the country's territorial waters, while the second fell within the territorial waters," the UAE military said in a statement posted on social media.

Iranian Foreign Ministry spokesman Esmaeil Baqaei later "categorically dismissed the UAE's claim that Iran had launched a missile toward that country", calling it "harmful" to regional trust and security efforts.

Ali Abdollahi, chief of staff of Iran's armed forces, warned Gulf states on Wednesday against assisting the US military, saying nothing is "hidden from our eyes".

When the conflict began on Feb 28, the UAE bore the brunt of Iran's attacks, with nearly 3,000 missiles and drones directed at the country — more than any other country in the region.

At odds

The US and Iran remained at odds over the Strait of Hormuz and the terms for ending the conflict, with the future of the talks uncertain after a 60-day negotiating period set under a memorandum of understanding ended on Monday.

In Washington, US President Donald Trump said on Tuesday that no Iran-US talks were in the pipeline. He shared a map labeling the strait "New US Territory", even as he insisted the vital waterway remained "open and operating".

CNN, citing multiple US administration officials, reported that Trump had instructed his negotiating team — including Vice-President JD Vance, envoys Steve Witkoff and Jared Kushner — to hold off on engaging Tehran, despite reports of preliminary positive-toned exchanges.

However, Iran said it will not reopen the strait until Washington meets a sweeping list of demands including ending the US blockade of Iran's ports, lifting oil sanctions, unfreezing Iranian assets and paying war damages.

"I want to state clearly that the Strait of Hormuz will not be opened until the American commitments stipulated in the memorandum of understanding … are implemented," Iran's Parliament Speaker Mohammad Bagher Ghalibaf said in a speech broadcast on state television.

Iranian Foreign Minister Abbas Araghchi said on Tuesday that the US is now "begging" to negotiate on Tehran's conditions after failing to force it to surrender.

Control of the waterway, which Iran has effectively closed since the conflict began, remained at the heart of the deadlock between Tehran and Washington.

Only six commodity vessels crossed the strait on Tuesday, down from nine a day earlier and below the 10-day daily average of 11, according to Kpler data.

ALSO READ: Trump threatens 'most crushing' economic warfare against Iran

The disruption was underscored on Tuesday, when the UK Maritime Trade Operations office reported that a vessel was struck by an unknown projectile in the Strait of Hormuz, injuring one crew member.

Trump threatened on Monday to "bomb" US ally Oman if it interfered with a deal on the strait.

Meanwhile, Qatar, a key mediator in the stalled Iran-US talks, said on Tuesday that an agreement between Iran and Oman over the Strait of Hormuz would make it easier to resume negotiations to end the war.

"What we are seeking is to reach an agreement on opening the Strait of Hormuz and a ceasefire at the same time," Qatari Foreign Ministry spokesman Majed Al Ansari told reporters at a news conference.

 

Contact the writers at cuihaipei@chinadaily.com.cn