The UAE just severed all trade with Iran after accusing it of firing ballistic missiles into the Persian Gulf—moves that could signal a major escalation in regional tensions. Once a key economic partner, the UAE is now cutting off every commercial and financial tie, citing threats to regional security. Iran denies launching the missiles, but its history of targeting shipping in the Strait of Hormuz—including attacks on UAE-linked tankers—adds fuel to the fire. With the U.S. also preparing to intensify economic pressure, Iran faces growing isolation as global allies tighten their stance.

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