The United Arab Emirates has halted all trade, commercial exchange and financial transactions with Iran after the latter attacked several UAE-owned tankers and rejected new talks with the United States.

The director of the strategic communications department at the UAE’s foreign affairs ministry, Afra Al Hameli, announced this in a statement Tuesday night.

“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 said.

According to the ministry, the UAE rejected all allegations about the status of its economic relationship with Iran.

It alao reaffirmed the UAE’s steadfast commitment to dialogue, cooperation, and regional integration as essential means of advancing peace, stability, and prosperity in the region.

“The UAE remains firmly committed to safeguarding the integrity of the international financial system, in line with international law and the highest global standards,” the statement added.

The decision followed a series of attacks on UAE-owned tankers and Tehran’s rejection of talks with the United States.

Hours before the ministry announced trade suspension, Iran had reportedly fired two missiles at the UAE, which landed on Emirati territorial waters and outside its territory, respectively.

Meanwhile, Iran’s foreign ministry spokesperson, Esmaeil Baghaei, denied that Iran was behind the launches.

“The allegation runs counter to the principle of good-neighbourliness and undermines ongoing efforts to strengthen trust among regional countries and prevent a further escalation of insecurity in the region,” Mr Baghaei said on Tuesday.

Since the U.S. and Israel launched joint attacks on Iran on February 28, the country has retaliated by attacking numerous countries across the Middle East.