The United Arab Emirates (UAE) has reportedly halted all trade exchanges and financial transactions with Iran "until further notice," according to a report shared by the state-run WAM news agency, citing the Foreign Ministry's strategic communications director.

No further details were revealed as yet.

The agency, however, said that the head of strategic communications at the Foreign Ministry, Afra al-Hameli, rejected all allegations regarding the status of the economic relationship between the UAE and Iran.

Al Hameli also reiterated the UAE’s steadfast commitment to dialogue, cooperation, and regional integration as essential means of advancing peace, stability, and prosperity in the region.

He underscored that, in light of regional escalations "that undermine regional and international peace and security, all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice," the statement shared by the WAM read.

The announcement came after the UAE Defense Ministry said it detected two Iranian ballistic missiles that targeted maritime navigation, an Anadolu Agency (AA) report said.

Tensions in the Middle East have heightened after the U.S. and Israel launched joint strikes on Iran in late February. In response, Tehran retaliated with strikes in regional countries hosting U.S. assets, including the UAE.

In mid-June, Iran and the U.S. signed a memorandum of understanding (MoU) under Pakistani mediation aimed at ending their war and reaching a lasting peace agreement.

Talks, however, have since broken down amid ongoing disputes over the memorandum's terms and navigation through the Hormuz Strait, a critical route for global energy exports.