The United Arab Emirates has suspended all trade, commercial transactions and financial dealings with Iran indefinitely, citing allegations that Iranian forces launched two ballistic missiles toward its territory. Tehran has rejected the accusation, calling it a false flag operation.The UAE Ministry of Foreign Affairs announced the decision in a statement on Wednesday, saying the move was prompted by escalating tensions that threaten regional peace and security.According to the UAE Defence Ministry, two missiles were launched from Iran. One reportedly fell outside UAE territorial waters, while the other landed inside the country’s territorial waters.The UAE said the suspension of trade and financial transactions with Iran will remain in effect until further notice.Tehran rejects UAE allegationsIranian Foreign Ministry spokesperson Esmail Baghaei dismissed the UAE’s allegations as completely baseless.He described the incident as a possible “false flag operation” amid the ongoing conflict involving the United States and Israel. Baghaei said the allegations were inconsistent with the principle of good faith and urged the UAE to examine what he called the harmful actions of the United States and Israel instead of making unsubstantiated claims against Tehran.Major blow to Iran’s tradeThe development comes after the expiration of US-Iran peace talks, amid growing military and economic pressure on Tehran.Former US Assistant Secretary of State Mark Kimmitt said the UAE’s decision could prove a major setback for Iran, potentially even greater than the impact of US sanctions.Dubai is one of Iran’s key commercial partners and a major hub for its international trade and financial transactions. As a result, the suspension could significantly affect Iran’s access to regional markets and international business channels.
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