Iranian Foreign Ministry spokesperson Esmail Baghaei accused regional countries of making allegations that could undermine attempts to improve security and cooperation | File image/ANI 
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Iran rejects UAE 'attack' claim as 'baseless' after trade freeze

Tehran has hit back at Abu Dhabi's missile allegations after the UAE suspended all trade and financial dealings with Iran

Iran has rejected the United Arab Emirates' allegation that Tehran launched ballistic missiles towards the Gulf state, calling the accusation "baseless" and warning that such claims could further strain regional efforts to build trust.

The response came after the UAE said its air defences had detected two ballistic missiles launched from Iran. The development was followed by Abu Dhabi's decision to suspend all trade and financial dealings with Tehran until further notice.

Iran rejects UAE's missile allegation

Iranian Foreign Ministry spokesperson Esmail Baghaei said Tehran had "categorically rejected" the UAE's claim. He accused regional countries of making allegations that could undermine attempts to improve security and cooperation.

Also Read | UAE cuts trade ties with Iran after two ballistic missiles target shipping

"This behaviour is contrary to the principle of good neighbourliness and disrupts ongoing efforts to strengthen trust between regional countries and prevent the escalation of insecurity in the region," Baghaei said in a statement posted on the Ministry's Telegram channel.

Baghaei also urged countries in the region to avoid what he described as unsupported allegations against Iran.

"... Refrain from making baseless accusations against the Islamic Republic of Iran, considering the existing complexities due to the ongoing evils of the US and the Zionist regime against regional peace and security, especially the history of numerous false flag operations," he said.

What did the UAE claim?

The dispute began after the UAE reported that two ballistic missiles had been launched from Iran towards the country. According to the UAE, one missile fell outside its territorial waters while the second landed within them.

"UAE air defenses detected two ballistic missiles launched from Iran toward the country, with the first falling outside the country's territorial waters, while the second fell within the territorial waters," the ministry said, in a statement posted to social media.

A later UAE statement said the missiles were aimed at maritime traffic but ultimately fell into the sea.

"Assessments carried out showed that the two ballistic missiles detected coming from Iran were targeting maritime navigation and fell into the sea."

UAE suspends trade with Iran

Following the incident, the UAE announced a suspension of all trade and financial dealings with Iran, citing regional escalation. The move came after residents received a brief warning about a "potential missile threat".

Also Read | Iran-fired missiles trigger emergency alert in UAE, no casualties reported

The alert was the first of its kind since June, when a false alarm was issued. Another warning followed in July over an attack that did not enter UAE territory.

The latest tensions come after repeated incidents involving tankers belonging to state-owned oil company ADNOC.

Iran has also warned that the Strait of Hormuz will remain closed until it reaches a peace agreement with the United States. The key waterway is used by ships leaving UAE ports to exit the Gulf.