The United Arab Emirates announced on Tuesday that it had suspended all trade and financial dealings with Iran.

The United Arab Emirates announced on Tuesday that it had suspended all trade and financial dealings with Iran.

“In light of regional escalations… all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice,” UAE foreign ministry communications director Afra Al Hameli said.

The first UAE statement came nearly two hours after a brief phone alert warned residents of a “potential missile threat”.

“Due to the current situation, potential missile threats, immediately seek a safe place in the closest secure building,” the interior ministry said in the phone alert, which was lifted shortly afterwards.

It was the first such alert since a false alarm in June and an alert in July for an attack that ultimately did not enter UAE territory. Before that, the last missile warning came in early May.

Tankers belonging to state-owned oil company ADNOC have been repeatedly targeted in the past few weeks.

When the Middle East war began on February 28, the UAE bore the brunt of Iran’s attacks, with nearly 3,000 missiles and drones directed at the country — more than anywhere else in the region.

After a memorandum of understanding came into effect in June between the two parties, which has since collapsed, the UAE reported no attacks, unlike other Gulf states.

The United Arab Emirates on Tuesday accused Iran of firing two ballistic missiles at shipping in the Gulf, an allegation later denied by Tehran.

“UAE air defenses detected two ballistic missiles launched from Iran toward the country, with the first falling outside the country’s territorial waters, while the second fell within the territorial waters,” the ministry said, in a statement posted to social media.

A second statement released later said: “Assessments carried out showed that the two ballistic missiles detected coming from Iran were targeting maritime navigation and fell into the sea.”

Iranian foreign ministry spokesman Esmaeil Baqaei “categorically rejected the United Arab Emirates’ claim that Iran had launched a missile toward that country”, calling it harmful to regional trust and security efforts.

But Iran has warned that the Strait of Hormuz — through which shipping leaving UAE ports must pass to exit the Gulf — will remain closed until it reaches a peace agreement with the United States.