The United Arab Emirates (UAE) government officially announced on Tuesday that it is severing trade relations with Iran. This decision follows a security incident in which two missiles, reportedly fired from Iran, were detected landing in the water near the UAE.

According to a statement released by the UAE’s Ministry of Foreign Affairs on the platform X, the announcement was made by Afra Al Hameli, the director of the Strategic Communications Department. While the UAE has framed this as a direct response to the missile incident, the specific details regarding the intended target of the missiles or the exact proximity to UAE territory remain limited in current reports.

This move marks a significant escalation in regional tensions between the two nations. The suspension of trade is expected to have immediate economic consequences for both countries, though the duration of this policy and the specific types of trade affected have not yet been fully detailed by officials. As of now, Iranian authorities have not issued a formal response to the UAE’s claims or the subsequent trade suspension. The situation remains fluid as international observers monitor whether this diplomatic rift will lead to further regional instability or if back-channel communications are underway to de-escalate the situation.