UAE Suspends Trade with Iran Amid Regional Tensions

DUBAI: The UAE this week announced it was suspending trade with Iran, heaping pressure on its major trading partner at the same time that the US declared "economic warfare" on Tehran. It is unclear when the suspension came into place or exactly what prompted it, with the UAE only citing "regional escalations". Experts have said that the UAE is sending a message to Iran, which has ramped up attacks on Emirati tankers in the Strait of Hormuz, while also signalling alignment with the United States -- although halting trade is expected to do little in the way of curbing illicit flows of sanctioned oil money. The United Arab Emirates is a significant trading partner for Iran and its top source of imports. In the 10 months preceding the war, Iran's trade with the UAE totalled $21 billion according to official Iranian figures. In 2024, Iran relied on the UAE for 30.6 percent of its imports totalling roughly $21 billion according to the World Trade Organization. The UAE is also Iran's third largest export destination, making up 12 percent of its exports, totalling more than $7 billion. The vast majority of UAE trade with Iran consists in re-exports, according to official Emirati data, including everything from phones to meat and other foodstuffs. These figures do not take into account smuggling and illicit flows, which are difficult to assess.