The United Arab Emirates has reportedly suspended trade with Iran, cutting off a major commercial route that has long provided Tehran with access to goods, foreign currency and international markets.
The development could have a significant impact on Iran’s economy, given the UAE’s position as the country’s largest supplier of imported goods and a key destination for its exports.
Dubai has served as an important commercial gateway for Iran, particularly amid years of Western sanctions. Traders based in the UAE have supplied Iran with consumer products, food, electronics and industrial equipment, while also facilitating the movement of Iranian exports.
Mark Kimmitt, a retired US general and former assistant secretary of state, said the disruption could severely affect Tehran’s finances.
“If the Emirates cease trade and blocks dollar flows, it could have a crippling effect on the Iranian economy,” Kimmitt told The Post.
The UAE-Iran economic relationship was strengthened in recent years, with the UAE reportedly overtaking China as Iran’s most important trading partner in 2024.
Trade data from the two countries showed that Iran imported about $14.8 billion worth of goods from the UAE during the first 10 months of the 2025 fiscal year. The figure represented roughly 30 per cent of Iran’s total imports during the period.
The UAE has also been a major source of essential products for Iran, with Dubai’s ports serving as a key entry point for items such as mobile phones, computers, tobacco, food products and industrial supplies.
At the same time, Iran exported goods worth approximately $6.5 billion to the UAE during the same period, accounting for nearly 15 per cent of its non-oil exports.
The UAE has also been an important market for Iranian fuel oil, reportedly accounting for about 70 per cent of the country’s fuel oil exports. In return, refined petroleum products such as petrol and diesel have been shipped from the UAE to help address shortages in Iran.
The reported trade suspension therefore threatens a relationship worth billions of dollars and could further deepen the economic pressure already facing Tehran under US sanctions.
Kimmitt described the potential impact of the UAE’s move as particularly serious.
“In many ways, the embargo being put on by the UAE is even more significant than the embargo being put on by the United States,” he told Al Jazeera.
The development comes as Washington seeks to increase international economic pressure on Iran. US Treasury Secretary Scott Bessent announced the launch of what he called “Operation Economic Outcast”, urging other countries to follow the UAE’s example and end commercial dealings with Tehran.
“The president is making phone calls to world leaders with specific requests to cease their interactions with the regime. We are already seeing results,” Bessent told reporters.
If the UAE maintains the reported suspension, Iran could face additional difficulties accessing foreign currency and obtaining essential imports, potentially adding to the pressure on an economy already weakened by sanctions and declining trade.
