The rift in the Gulf: From talks to release billions to "hired sword"

Iran accuses the United Arab Emirates of halting trade with it as part of an American economic war. Iranian media outlets call Abu Dhabi a "hired sword" in the service of Zionist-American interests. Meanwhile, the UAE announced a halt to all economic activities with Iran amid regional escalation, hours after identifying two ballistic missiles from Iran. The annual trade volume between the countries is estimated at $27-29 billion.

Tensions between Iran and the United Arab Emirates have reached a new low, with Tehran accusing Abu Dhabi of halting trade with it as part of an American campaign to deepen Iran's financial isolation. In Iranian media, particularly the conservative-affiliated Fars agency, Abu Dhabi was called a "hired sword in the service of Zionist-American goals in the region," and a separate column stated that "betrayal always has a price." On the other hand, the UAE Foreign Ministry announced a halt to all trade exchanges and financial transactions with Iran until further notice, citing regional escalation harming peace and security. The decision came hours after the Emirati Defense Ministry reported identifying two ballistic missiles from Iran, although Iranian Foreign Ministry spokesman Esmaeil Baghaei dismissed the accusations as "baseless." The economic significance of the move is dramatic: the UAE is Iran's second-largest trading partner in the world, after China, with non-oil trade volume of $27 to $29 billion annually. According to estimates, the move could block about a quarter of Iran's foreign trade. Dubai and Jebel Ali port serve as a major gateway for goods destined for Iran, and this strategic dependence makes it difficult to find quick alternatives. The current crisis comes after months of fluctuations: only about two months ago, talks were reported on a broad settlement, in which the UAE considered releasing frozen Iranian assets worth up to ten billion dollars. Now, relations have moved from talks to restore cooperation to a complete halt of trade and sharp mutual accusations.