Overview
- The UAE defence ministry said its air defences detected two ballistic missiles launched from Iran on Tuesday, Aug. 18 that fell into the sea and were assessed to have been aimed at maritime traffic.
- Hours after the missile alert the UAE Foreign Ministry announced all trade, commercial exchanges and financial transactions with Iran were halted until further notice.
- Iran’s foreign ministry rejected the accusation as baseless, leaving responsibility for the launches disputed between Abu Dhabi and Tehran.
- Independent ship‑tracking data showed transits through the Strait of Hormuz slowed after the incident, increasing risks to commercial shipping and to oil and gas flows that pass the waterway.
- The episode follows a collapsed 60‑day U.S.‑Iran negotiation window that ended Aug. 17 and recent attacks on ADNOC vessels, and it marks a sharp diplomatic and economic rupture with likely material effects on people and businesses in the Gulf.