The United Arab Emirates has announced that it has suspended all trade and financial transactions with Iran after reporting that two ballistic missiles were launched from the country toward its territorial waters.
Both missiles fell into the water and caused no damage or casualties, but the reported strike marks an unwelcome return of conflict to the shores of the Gulf economy.
The UAE stated that it took the step to indefinitely suspend trade "in light of regional escalations that undermine regional and international peace and security."
Iranian Foreign Ministry spokesman Esmail Baghaei rejected the claim that Tehran had launched a missile at the UAE.
Talks stalled
The incident comes amid a standstill in progress toward any U.S.-Iranian ceasefire or agreement regarding the Strait of Hormuz.
President Donald Trump confirmed that the U.S. is not currently in talks with Iran and has no plans to restart them.
This leaves the belligerents to consider their next stages in the prolonged conflict.
