On August 18, the United Arab Emirates announced it would halt all trade and financial transactions with Iran after accusing Iran of launching missiles toward the UAE.
On August 18, the United Arab Emirates announced it would halt all trade and financial transactions with Iran after accusing Iran of launching missiles toward the UAE. The UAE said the missiles targeted vessels attempting to disrupt maritime navigation in the Strait of Hormuz. The United Arab Emirates has previously supported United States efforts to limit Iranian control of the Strait of Hormuz. Iranian Foreign Ministry spokesperson Esmail Baghaei denied that Iran launched the missiles. The suspension will cut roughly one‑third of Iran’s imports, which largely come from the UAE, and reduce the country’s ability to repatriate export revenues and circumvent sanctions. Analysts said the move may increase Iran’s economic pressure amid a U.S. naval blockade that restricts direct trade. Iran may respond with increased military and economic pressure against the UAE rather than abandon its goal of greater control over the Strait. Iraqi Prime Minister Ali al Zaydi said he would reinforce security near Jurf al Sakhar, deploying a special counter‑terrorism unit to monitor movement of people and vehicles without planning a raid. He faces pressure from the United States and Iran‑aligned militias. Iranian officials, including Parliament Speaker Mohammad Bagher Ghalibaf, traveled to Baghdad to discourage confrontation and to oppose disarmament of the militias. Militias have continued to resist government disarmament, handing in limited or inoperable weapons. Some Iraqi political groups have sought to negotiate settlements that delay disarmament until after the planned withdrawal of U.S. forces. The economic pressure from the UAE’s decision, combined with the ongoing naval blockade, is likely to intensify domestic unrest in Iran, though it is unclear whether the regime will make concessions. The situation remains fluid as Iran and the UAE assess the broader implications for control of the Strait of Hormuz.
- Publisher
- understandingwar
- Reliability
- high
- Published
- 8/21/2026, 10:00:25 AM
- Retrieved
- 8/21/2026, 10:00:25 AM
- Relevance
- 80%
- Confidence
- 85%

