The United Arab Emirates (UAE) has formally announced an indefinite trade embargo on Iran, a move triggered by accusations of Iranian forces firing two ballistic missiles at the country. This decision, announced early Wednesday, comes after the UAE’s Ministry of Foreign Affairs stated that the escalation of tensions necessitates a reassessment of regional stability. The ministry detailed that all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice, a directive that was issued following the Ministry of Defence’s detection of two ballistic missiles launched from Iran, one falling outside the country’s territorial waters and the other landing within its borders. The Ministry of Defence’s statement affirmed that the missiles were targeted at maritime traffic, with the intention of ‘resolutely confront any attempt to undermine the security of the nation or maritime navigation in the region.’
The UAE’s Ministry of Foreign Affairs vehemently denies these accusations, asserting that the missiles were ‘baseless’ and a ‘false flag operation’ launched by the United States and Israel in response to the war initiated by the United States and Israel against Iran’s country. Spokesman Esmaeil Baghaei, in a statement released Tuesday, condemned the claim as ‘contradicting the principle of good neighbourliness’ and urged regional parties to refrain from unfounded claims against Tehran. Baghaei further argued that any honest assessment of the situation must also consider Iran’s malicious actions, including the US and Israel’s continued military operations in the region. The UAE’s trade embargo, which began on March 60, immediately following the expiration of a six-month peace talks, has significantly impacted Iran’s economy. The UAE, having suspended direct cargo shipping between the two countries in early March, resumed trade in late June via Dubai’s Jebel Ali Port. Mark Kimmitt, a retired US general and former assistant secretary of state, cautioned that the UAE’s embargo could be substantially more damaging to Iran than any imposed by the United States. The UAE’s reliance on Dubai as its most important trading partner, with Dubai holding roughly a third of Iran’s imports, has deepened, edging out China and Turkey as a key supplier. The UAE’s initial move to suspend direct cargo shipping in early March, coupled with the resumption of trade in late June, reflects a strategic realignment. However, Kimmitt predicted that other Gulf states may follow suit, potentially leading to a ‘wait-and-see’ approach, anticipating that Iranian attacks could escalate into a full-blown war. Despite this, the UAE’s decision is viewed as a significant step, with Dubai becoming Iran’s most important trading partner, potentially offsetting the influence of China and Turkey in supplying roughly one-third of Iran’s imports annually. The UAE’s strategy is rooted in a deliberate attempt to limit Iran’s access to critical financial and goods markets, particularly through its partnership with Dubai. A 2023 report by the International Trade Centre estimates that Dubai’s presence is crucial for Iran’s trade, given its long-standing role as a discreet conduit for money moving between sanctions and international regulations. The UAE’s actions are also considered significant, as the US had imposed a naval blockade on Iranian ports in 2012, a measure that the UAE has considered a similar, but more substantial, measure. Kimmitt stated that the UAE’s embargo is ‘even more significant’ than the US embargo on Japan following World War II, highlighting the UAE’s calculated risk in attempting to isolate Iran.”]
Source: Al Jazeera
