According to the UAE Ministry of Foreign Affairs, the decision was taken in response to the deteriorating regional situation, which it said poses a growing threat to regional and global peace and security.
The move follows missile attacks and heightened military tensions in the region. The UAE has accused Iran of launching missiles from its territory toward a Gulf country.
Iran has rejected the allegation. Iranian Foreign Ministry spokesman Esmail Baghaei dismissed the UAE’s claims as baseless and rejected the accusations against Tehran.
The suspension of commercial and financial activities is expected to put further pressure on economic relations between the UAE and Iran, which have maintained significant trade and business links despite political and regional differences.
The latest development comes as the broader Middle East remains under severe security and military tensions, raising concerns about further escalation and its potential economic impact on the region.