{"id":1021965,"date":"2026-08-24T23:34:15","date_gmt":"2026-08-24T23:34:15","guid":{"rendered":"https:\/\/www.europesays.com\/us\/1021965\/"},"modified":"2026-08-24T23:34:15","modified_gmt":"2026-08-24T23:34:15","slug":"united-arab-emirates-cuts-off-trade-with-iran-nixing-billions-why-it-could-have-crippling-effect-on-tehran","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/1021965\/","title":{"rendered":"United Arab Emirates cuts off trade with Iran, nixing billions \u2014 why it could have &#8216;crippling effect&#8217; on Tehran"},"content":{"rendered":"<p>A US ally in the Middle East has finally cut off Iran \u2014 and it could be one of the biggest threats to the regime yet. <\/p>\n<p>The <a href=\"https:\/\/nypost.com\/2026\/08\/23\/world-news\/uae-suspends-all-trade-with-iran-until-further-notice-after-accusing-tehran-of-firing-ballistic-missiles-toward-country\/\" rel=\"nofollow noopener\" target=\"_blank\">United Arab Emirates, which serves as Tehran\u2019s largest supplier of goods<\/a>, suspended all trade with the Iran over the weekend \u2014 nixing $6 billion in cash that went to the regime from exports, as well as access to vital supplies from the outside world. <\/p>\n<p>Dubai \u2014 the UAE\u2019s thriving commercial pub \u2014 is by far Iran\u2019s largest supplier of goods. The Emirati government finally got fed up with Iran <a href=\"https:\/\/nypost.com\/2026\/05\/05\/world-news\/iran-hits-uae-with-drones-and-missile-attacks-as-trump-tries-to-reopen-strait-of-hormuz\/\" rel=\"nofollow noopener\" target=\"_blank\">following repeated missile attacks<\/a> that triggered evacuations for the first time during the war.<\/p>\n<p>The move not only threatens the $21.3 billion trade relations between the two nations, it also leaves Iran without its primary way to collect US dollars, Mark Kimmitt, a retired US general and former assistant secretary of state, told The Post.<\/p>\n<p>The United Arab Emirates served as a trade hub for Iran, with billions in imports and exports flowing through before the war. Mariusz \u2013 stock.adobe.com<\/p>\n<p>Iran depends on the UAE\u2019s trade network for food, consumer goods and industrial equipment. AP Photo\/Vahid Salemi<\/p>\n<p>Dubai is Iran\u2019s biggest supplier of goods. (Tam Nguyen \/ NY Post Design) Tam Nguyen \/ NY Post Design<\/p>\n<p>\u201cIf the Emirates cease trade and blocks dollar flows, it could have a crippling effect on the Iranian economy,\u201d Kimmitt said.  <\/p>\n<p>Dubai essentially served as Iran\u2019s window to the world after years of being slapped by Western sanctions, with traders buying and re-exporting consumer goods, food and industrial equipment to Iran.<\/p>\n<p>The two nations strengthened their economic cooperation in 2024, with the UAE surpassing China as Iran\u2019s most vital trading partner.<\/p>\n<p>Iran imported about $14.8 billion worth of goods from the UAE during the first 10 months of the 2025 fiscal year, accounting for 30% of its total imports, according to the two countries\u2019 trade data.<\/p>\n<p>The UAE suspended all trade with Iran after its ports came under fire repeatedly during the war. REUTERS<\/p>\n<p>Dubai\u2019s ports are the primary way Iran gets goods like phones, computers, tobacco and nuts.<\/p>\n<p>Meanwhile, Iran exported around $6.5 billion worth goods to the UAE during the same fiscal period, nearly 15% of its non-oil exports.<\/p>\n<p>Most notably, Iran also depended on the UAE for 70% of its fuel oil exports, making the UAE its largest market for the product.<\/p>\n<p>People walk past shops and browse for goods at the Grand Bazaar in Tehran on Monday. AFP via Getty Images<\/p>\n<p>Refined oil also come back in the opposite direction from Dubai \u2014 with gasoline and diesel imports from the UAE helping to offset Iran\u2019s supply deficit.<\/p>\n<p>The blow leaves Iran with fewer means to make money and import goods as its economy continues to plummet under<a href=\"https:\/\/nypost.com\/2026\/08\/14\/us-news\/us-will-hit-iran-economically-in-ways-that-have-never-been-seen-next-week-one-two-punch\/\" rel=\"nofollow noopener\" target=\"_blank\"> the strain of US sanctions<\/a>.<\/p>\n<p>\u201cIn many ways, the embargo being put on by the UAE is even more significant than the embargo being put on by the United States,\u201d <a href=\"https:\/\/www.aljazeera.com\/news\/2026\/8\/19\/uae-trade-embargo-could-shut-irans-key-economic-escape-route-heres-why\" target=\"_blank\" rel=\"noopener nofollow\">Kimmitt told Al Jazeera<\/a>. <\/p>\n<p>The strains come as <a href=\"https:\/\/nypost.com\/2026\/08\/24\/world-news\/trump-unleashes-operation-economic-outcast-against-iran-as-bessent-warns-nations-not-to-do-business-tighten-the-noose\/\" rel=\"nofollow noopener\" target=\"_blank\">US Treasury Secretary Scott Bessent<\/a> announced the start of the \u201cOperation Economic Outcast\u201d on Monday, calling on all nations to follow the UAE\u2019s lead and cut off all business with Iran. <\/p>\n<p>\u201cThe president is making phone calls to world leaders with specific requests to cease their interactions with the regime. We are already seeing results,\u201d Bessent told reporters. <\/p>\n","protected":false},"excerpt":{"rendered":"A US ally in the Middle East has finally cut off Iran \u2014 and it could be one&hellip;\n","protected":false},"author":3,"featured_media":1021966,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5],"tags":[79,83,50,130,10317,131,103,107],"class_list":["post-1021965","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world","tag-economy","tag-iran","tag-news","tag-trade","tag-united-arab-emirates","tag-war","tag-world","tag-world-news"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/117153110913273830","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1021965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=1021965"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1021965\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/1021966"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=1021965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=1021965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=1021965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}