UAE-Iran trade relationship becomes key test of Trump’s wartime strategy
The Gulf state suspended trade with Iran after new attacks in August. Experts point to risks for both sides as the Trump administration seeks to squeeze Tehran economically.
Tensions are flaring again between the United Arab Emirates and Iran after months of relative calm, with the fallout potentially shaping the course of the US-Israel-Iran war.
On Aug. 18, the UAE issued an emergency alert after detecting two incoming missiles launched from Iran’s direction, which authorities said targeted maritime traffic and fell into the sea. The alert was the first in over a month after the UAE endured the worst of Iran’s initial retaliatory attacks on Gulf states amid the conflict’s early stages.
Within hours of the incident, Abu Dhabi announced it was halting all trade, commercial exchanges and financial transactions with Iran “until further notice.” The move signaled that the UAE could be abandoning a cautious rapprochement with Tehran that emerged following a US-Iran ceasefire deal in April, as Abu Dhabi bet on restoring diplomatic and economic relations.
Initially, that strategy worked. Iranian attacks on the UAE tapered off — even as the ceasefire collapsed in July and Tehran resumed hitting regional targets. Weeks later, however, the Gulf state is back in the crosshairs.
