Iran warns Gulf countries against assisting the United States military. The warning came on Wednesday, hours after the United Arab Emirates announced it was suspending all trade with Tehran. The move follows renewed missile attacks on shipping near UAE waters and marks one of the sharpest escalations in the region this year.
What is all this fuss about?
The UAE announced on Tuesday that it was halting all trade, commercial exchanges and financial transactions with Iran. The decision came after Abu Dhabi accused Tehran of firing two ballistic missiles toward its coast. Iran denied launching any missile at the UAE, saying the claim was baseless. Hours later, Iran warns Gulf countries not to help the US military in any way. Iran’s Armed Forces Chief of Staff issued the warning through state media.
Why is Iran warning Gulf countries?
Iran warns Gulf countries because it fears regional nations could support American military operations against it. Iranian Armed Forces Chief of Staff Ali Abdollahi said any help given to US forces would count as direct participation in the conflict.
“Any assistance or facilitation provided to the aggressor US military amounts to participation in the US military operation,” Abdollahi said, according to Iran’s Mehr news agency.
Ali Abdollahi, Chief of Staff, Iranian Armed Forces, via Mehr news agency, August 19, 2026.
The Gulf region hosts several major US military installations, including bases in the UAE. Media reports have alleged that Saudi Arabia, the UAE, Kuwait and Bahrain carried out strikes on Iranian targets in retaliation for Iranian attacks. These four countries have largely denied the reports.
Iran’s warning also follows the breakdown of a US-Iran deal meant to reopen the Strait of Hormuz. Talks recently stalled again after President Donald Trump said negotiations were off, despite earlier signs that messages were still being exchanged between the two sides.
How much was Iran dependent on trade with gulf countries, especially the UAE?
Before the war, the UAE was one of Iran’s most important trading partners. It was Iran’s second largest trade partner worldwide by some estimates. Key trade figures include:
- The UAE supplied more than 30 percent of Iran’s imports, worth around 21 billion dollars, according to World Trade Organization data from 2024
- The UAE received close to 13 percent of Iran’s exports, worth about 7 billion dollars
- Combined bilateral trade between the two countries was close to 30 billion dollars annually before the war
- Beyond direct trade, the UAE, especially Dubai, served as a major re-export hub for goods reaching Iran despite US sanctions
Iran’s Trade Dependence on the UAE (Share of Total Trade)
Imports from UAE 30%+
Exports to UAE ~13%
Data cited from World Trade Organization figures, 2024, and Arab Defence trade analysis, April 2026.
Mohammad Farzanegan, a professor of Middle Eastern economics, said the UAE’s own economy also depends on regional stability with Tehran. “Any major conflict with Iran can therefore cause substantial damage to its economy,” said Farzanegan, quoted by the Associated Press, on August 2026.
How will withdrawal of UAE trade ties affect Iran’s economy during its war times?
Iran’s economy was already under heavy strain before the UAE announcement. The country has been dealing with steep inflation and a shrinking economy through the ongoing conflict.
Reported impacts on the Iranian economy include:
- Inflation running close to 70 percent, according to International Monetary Fund estimates
- A projected economic contraction of about 5.4 percent this year
- Loss of a key re-export channel that had helped Iranian businesses access foreign goods despite sanctions
- Reduced options for financial transactions, since much informal Iran-linked banking activity ran through the UAE
The suspension of trade removes a critical economic lifeline at a time when Iran is already facing US sanctions and a naval blockade in parts of the Gulf. Analysts note the UAE had functioned as one of the few remaining channels connecting Iran’s economy to global markets.
Traffic through the Strait of Hormuz, a route vital for global oil trade, has also collapsed. Only around 10 vessels crossed the strait on a recent day, a fraction of pre-war volumes.
What has happened till now in the Israel-Iran-USA war?
The current conflict has moved through several distinct phases since 2025. Here is a simple timeline of major events.
| Date | Event |
| June 24, 2025 | Ceasefire ends the Twelve-Day War between Israel and Iran, mediated by the US and Qatar |
| February 28, 2026 | US and Israel launch strikes on Iran; Iran’s Supreme Leader Ali Khamenei is killed |
| Late February 2026 | Iran closes the Strait of Hormuz and strikes US bases and regional targets |
| March 19, 2026 | US begins an aerial campaign to reopen the Strait of Hormuz |
| April 7-8, 2026 | US and Iran agree to a ceasefire, mediated by Pakistan |
| June 14-17, 2026 | US and Iran sign a 14-point memorandum of understanding; naval blockade lifted |
| July 2026 | Conflict resumes after Iran strikes commercial vessels bypassing an approved shipping route |
| August 18-19, 2026 | UAE suspends trade with Iran; Iran warns Gulf countries against helping the US |
Since the June memorandum, both sides have accused each other of violations. The document set a 60-day window for further talks on Iran’s nuclear programme, the Strait of Hormuz and sanctions relief, but no lasting settlement has emerged. The UAE recalled its ambassador to Tehran earlier in the conflict and has shut Iran-linked schools and a hospital. Tankers belonging to the UAE’s state-owned oil firm ADNOC have been repeatedly targeted in recent weeks.
What happens next?
US Secretary of State Marco Rubio spoke with the UAE’s national security adviser this week to discuss coordination against Iran and the importance of free passage through the Strait of Hormuz. Diplomatic efforts to end the wider conflict remain stalled for now.
The UAE has said it remains committed to dialogue and regional stability despite the trade suspension. For Gulf economies and Iran alike, the coming weeks are likely to test whether economic pressure can succeed where military and diplomatic efforts have so far struggled to bring a lasting resolution.