By Cui Haipei in Dubai, UAEand Jan Yumul in Hong Kong |

chinadaily.com.cn |

The conflict between the United States and Iran has entered a new phase of political attrition. The United Arab Emirates on Tuesday announced the suspension of all trade and financial dealings with Iran after alleging that two Iranian missiles targeting maritime navigation fell into the sea, a claim immediately rejected by Tehran.

Tuesday's announcement marked the latest UAE countermeasure against Iran, following its ambassador's recall earlier. The move also came after months of relative calm within UAE territory.

"In light of regional escalations … all trade, commercial exchanges and financial transactions with Iran have been halted until further notice," said Afra Al Hameli, communications director of the UAE's Foreign Ministry, while reaffirming Abu Dhabi's commitment to dialogue-based solutions for regional peace.