The United Arab Emirates has suspended all trade activities, exchanges, and financial transactions with Iran until further notice, the Foreign Ministry said in a statement on Wednesday, citing regional escalation that it said undermined regional and international peace and security.

In a statement on X, spokesperson and Director of the Strategic Communications Department at the UAE Ministry of Foreign Affairs Afra Al Hameli rejected allegations regarding the status of the country’s economic relationship with Iran, saying all trade, commercial exchanges and financial transactions with Tehran had been halted until further notice.

She reiterated the UAE’s commitment to dialogue, cooperation and regional integration as essential means of advancing peace, stability and prosperity in the region.

“In light of regional escalations that undermine regional and international peace and security, all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice,” Al Hameli said.

She also stressed that the UAE remained firmly committed to safeguarding the integrity of the international financial system in line with international law and the highest global standards.

The announcement came after the UAE Defense Ministry said it detected two Iranian ballistic missiles that targeted maritime navigation.

The UAE had recently accused Iran of attacking its state-owned ADNOC vessels while transiting the Strait of Hormuz.

Read: Iran threatens new offensive while US rules out extending ceasefire deal

Iran has not claimed responsibility for the attacks on ADNOC vessels. Iran’s Revolutionary Guards have previously threatened action against vessels transiting the strait if they are linked to Tehran’s adversaries or fail to comply with Iranian directives.

Tensions in the Middle East have heightened after the US and Israel launched joint strikes on Iran. In response, Tehran retaliated with strikes in regional countries, including the UAE, hosting US assets.

In mid-June, Iran and the US signed a memorandum of understanding under Pakistani mediation aimed at ending their war and reaching a lasting peace agreement.

Talks, however, have since broken down amid ongoing disputes over the memorandum’s terms and navigation through the Hormuz Strait, a critical route for global energy exports.