UAE's financial embargo on Iran after missile threat puts rivalry back in spotlight

AI Summary

The UAE has imposed a financial embargo on Iran following a missile threat attributed to Tehran amid regional tensions. This decision highlights the renewed rivalry between the two countries, with specific concern over an attack on Fujairah port, an important oil export hub.

DUBAI, Aug 19 - The United Arab Emirates' decision to suspend all financial and economic transactions with Iran until further notice, citing amilitary escalation by Tehran with a missile threat, has refocused the spotlight on fraught ties between the major Gulf Arab oil producer and Iran. The UAE, a close U.S. ally and regional power, was the Gulf state most heavily hit by Tehran during the early stages of the Middle East war. However, the last reported attack on UAE soil was the May 4 strike on Fujairah port, a key oil export hub.