Iran’s formal denial deepens the standoff with the UAE rather than resolving it, keeping a layer of uncertainty over Gulf risk premia already elevated by the Hormuz closure and wider US-Iran tensions. Traders will read the exchange of accusations as a sign that direct confrontation between Iran and a major Gulf oil and shipping hub remains a live risk, even without independent confirmation of what happened. The reference to alleged false flag activity signals Tehran expects further accusations and is pre-positioning its response, which could sustain a steady drip of headline risk in the days ahead. For now the denial alone is unlikely to move oil much beyond the existing Strait of Hormuz risk premium, but it keeps the UAE-Iran channel firmly on the list of flashpoints traders are watching alongside the main US-Iran track.
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Earlier:
- Oil catch up – prices hit three-week high as Iran vows offensive stance, denies UAE missile claim
- Oil: Private survey of inventory shows headline crude oil draw and huge diesel draw
- UAE halts all trade and financial dealings with Iran, MoFA official says
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Iran has flatly denied firing missiles at the UAE, calling the accusation baseless and warning against further unfounded claims.
Summary:
- Iranian Foreign Ministry spokesman Baghaei rejected the UAE’s accusation that Iran fired missiles at the country
- He said such actions would violate good neighbourly relations and undermine trust and stability efforts among regional states
- Baghaei called on all parties to avoid unfounded accusations against Iran
- He cited what he described as the complex regional situation caused by continued malicious actions from the US and Israel, including alleged false flag operations in recent years
- The statement follows the UAE’s earlier announcement suspending trade, commercial and financial transactions with Iran
Iran’s Foreign Ministry has rejected accusations from the United Arab Emirates that it fired missiles at the country, with spokesman Esmaeil Baghaei calling the claims unfounded and warning they risk destabilising the region further.
Speaking on Wednesday, Baghaei said any such action would run counter to the principle of good neighbourly relations and would undermine ongoing efforts to build trust among regional states and prevent a further escalation of insecurity. He urged all parties to refrain from levelling unfounded accusations against Iran.
The spokesman framed the denial within a broader narrative of regional instability, pointing to what he characterised as the continued malicious conduct of the United States and Israel toward regional peace and security. He specifically referenced a pattern of alleged false flag operations in recent years, suggesting Tehran views the UAE’s accusation as part of that pattern rather than an isolated incident.
The exchange follows the UAE’s announcement earlier this week that it had suspended all trade, commercial and financial transactions with Iran, a move Abu Dhabi tied to regional escalations threatening peace and security. The UAE separately said it had detected two ballistic missiles launched from Iranian territory against the country, an allegation Tehran has now formally and firmly rejected.
The dispute adds a further complication to an already fraught picture across the Gulf, where the Strait of Hormuz remains largely closed to commercial shipping and diplomatic efforts between Iran and the United States have stalled. With both Abu Dhabi and Tehran now trading direct accusations, the risk of miscommunication or further escalation between two major regional players has increased, even as neither side has presented independently verified evidence of what transpired. Analysts and regional observers will be watching closely for any additional statements from either government, as well as for signs of whether the episode remains contained to a war of words or spills into further action.
This article was written by Eamonn Sheridan at investinglive.com.