The UAE suspends all trade with Iran after missile attacks target maritime activities, impacting smuggling and financial networks.
The United Arab Emirates (UAE) has decided to suspend all commercial relations with Iran, including financial transactions, following ballistic missile attacks originating from Iran. The decision is expected to have significant impacts on smuggling and money laundering networks linked to Iran.
The decision came after ballistic missile attacks that were reportedly carried out by Iran against maritime targets within or near the UAE. The UAE Ministry of Defense announced that two ballistic missiles were launched from Iran towards the country, with one missile falling into the sea outside territorial waters and the other landing within territorial waters.
The ministry assessed that the missiles targeted maritime activities. Iran, however, denied any connection to the attacks that occurred on Tuesday.
It is noted that Iran has previously carried out attacks against maritime activities linked to the UAE. Since the onset of the conflicts, at least 19 vessels associated with the UAE state oil company Adnoc have been targeted.
Adnoc, one of the most active oil transportation companies in the Gulf Cooperation Council, operates in the section of the Strait of Hormuz outside of Iran and is emerging as a strategic target for the Iranian Revolutionary Guards.
Recently, while the impact of drone attacks on Adnoc tankers on maritime traffic has been reported to be limited, it is assessed that anti-ship ballistic missile (ASBM) attacks could cause serious damage to vessels due to their much higher speed and nearly vertical trajectory.
The UAE's decision to suspend trade with Iran signals a new wave of tension following a commercial thaw observed between the two countries in July.
In the first two months of the conflicts, maritime transportation between the UAE and Iran had nearly come to a standstill. However, in July, there was a resurgence in the volume of cross-Gulf trade from the UAE to Iranian ports.
The new decision is expected to exert pressure on financial transactions, trade, and maritime activities, particularly those conducted through free zones in the UAE.
The UAE's move is also considered a critical development for maritime trade in the Gulf. It is anticipated that risks regarding the security of vessel traffic around the Strait of Hormuz and the sustainability of oil shipments will be brought back to the forefront.
Source: SeaNews Türkiye
