The United Arab Emirates has accused Iran of launching two ballistic missiles toward the country, in the first such incident reported since a May strike on Fujairah port, sharply escalating tensions in the Gulf.

The UAE Ministry of Defence said its air defenses detected the two missiles on Tuesday, August 18. According to the ministry, one missile fell outside UAE territorial waters while the second fell within them.

The incident prompted UAE authorities to issue emergency warnings urging residents to move to secure locations and follow official instructions.

Iran, however, has rejected the UAE’s allegation. Iranian Foreign Ministry spokesperson Esmaeil Baghaei described the accusation as “baseless,” according to Reuters.

What happened to the two missiles?

The UAE Ministry of Defence said its air defenses detected two ballistic missiles launched from Iran toward the UAE.

The ministry reported that:

• The first missile fell outside UAE territorial waters.
• The second missile fell within UAE territorial waters.
• Both missiles ultimately fell into the sea.
• UAE air defenses remained on high alert.
• Authorities urged residents to rely only on official information.

The ministry did not report a missile impact on populated areas or damage on UAE territory in its initial statement.

Reuters later reported that the UAE assessed the missiles as having been directed toward maritime traffic.

That assessment is significant because it suggests the incident may have been connected to the wider confrontation over shipping in and around the Strait of Hormuz rather than an attempt to strike a major UAE population center.

Why did the UAE tell residents to take shelter?

Before the UAE confirmed that two missiles had been launched from Iran, the National Emergency Crisis and Disaster Management Authority warned residents that its air-defense systems had detected a missile threat.

The Interior Ministry separately advised people to seek shelter in the closest secure building.

Residents were told to remain in safe locations and follow official alerts and instructions.

The warnings were precautionary measures designed to protect civilians while authorities assessed the incoming threat.

After the situation was deemed safe, the Interior Ministry sent another alert telling residents they could resume normal activities, according to Reuters.

Did the UAE intercept the missiles?

The UAE’s official statement said its air defenses detected the two missiles, but it did not describe both missiles as having been intercepted.

Instead, the ministry said one fell outside the country’s territorial waters and the other fell within them.

That distinction matters.

An air-defense system can detect and track an incoming projectile without necessarily destroying it. In this case, the UAE’s public statement did not say that either missile was successfully intercepted.

Why is Iran accused of launching the missiles?

The UAE says its air-defense systems identified the missiles as having been launched from Iran.

The accusation comes amid an increasingly tense confrontation between Tehran and Washington and growing disputes over shipping through the Strait of Hormuz.

Iran has denied the allegation.

Foreign Ministry spokesperson Esmaeil Baghaei called the UAE’s accusation baseless, according to Reuters.

The competing claims mean the UAE’s attribution should be presented as an allegation by Abu Dhabi rather than as an independently established fact.

Why is the Strait of Hormuz at the center of the crisis?

The Strait of Hormuz is one of the world’s most important energy and shipping corridors.

It links the Persian Gulf with the Gulf of Oman and the Arabian Sea, providing a crucial route for oil and gas exports from several Gulf countries.

The waterway has become a major flashpoint during the current conflict.

Shipping traffic has fallen sharply, with Reuters reporting that vessel crossings remained in single digits on some days in August.

The disruption has also pushed oil prices higher. Brent crude settled above $91 a barrel on August 18, reaching its highest level in more than three weeks as concerns over the conflict and shipping disruptions intensified.

Why is this the first major UAE missile incident in months?

Reuters described Tuesday’s incident as the first such missile incident reported since a May 4 strike on Fujairah port.

The relative lull followed the June agreement between the United States and Iran that temporarily halted military operations.

That arrangement established a 60-day period for Washington and Tehran to work toward a broader agreement.

The period expired on Monday without a lasting settlement.

The latest missile incident therefore comes at a particularly sensitive moment, when the diplomatic framework that had reduced attacks on the UAE appears to have collapsed.

What did the June US-Iran agreement say?

A memorandum of understanding signed on June 17 established an interim framework intended to stop military operations and create space for negotiations.

The agreement was supposed to provide a 60-day window for discussions over issues including Iran’s nuclear program and U.S. sanctions.

That period ended on Monday without a broader deal.

The dispute over the Strait of Hormuz has since become one of the biggest obstacles to further progress.

Iran has maintained that the waterway will remain closed until Washington meets its conditions, while President Donald Trump has said there are currently no negotiations with Tehran and that the strait is open.

Has the UAE faced Iranian attacks before?

Yes.

The UAE was repeatedly targeted during the wider conflict earlier this year.

Reuters reported in March that UAE authorities had detected hundreds of ballistic missiles and more than 1,400 drones launched toward the country since the beginning of the U.S.-Israeli air war against Iran. The UAE said most of the missiles were intercepted, while others fell into the sea or reached UAE territory.

The country has also experienced attacks involving commercial vessels.

In July, the UAE said two Emirati oil tankers were struck by Iranian cruise missiles while traveling through the Strait of Hormuz. One Indian crew member was killed and eight others were injured, according to Reuters.

More recently, the UAE accused Iran of attacking ADNOC-linked vessels in the waterway.

Those incidents have made maritime security a growing concern for Abu Dhabi.

What has the UAE done after the latest missile incident?

The UAE has placed its defense systems on high alert and urged residents to obtain information only from official government sources.

The country also announced a major diplomatic and economic response.

According to Reuters, the UAE said it would suspend trade activities, commercial exchanges and financial transactions with Iran until further notice, citing the escalation’s threat to regional and international peace and security.

The decision represents a significant deterioration in relations between the two countries.

It also comes after direct cargo shipping between the UAE and Iran had resumed only recently following an earlier suspension.

What does the missile incident mean for the region?

The immediate physical damage appears limited because both missiles fell into the sea, according to the UAE’s account.

The broader implications could be much more serious.

The incident could:

• Increase military tensions between Iran and Gulf states.
• Further disrupt shipping through the Strait of Hormuz.
• Push oil and gas prices higher.
• Increase insurance costs for commercial vessels.
• Complicate U.S.-Iran diplomatic efforts.
• Prompt additional security measures across Gulf countries.
• Put further pressure on regional financial markets.

The UAE’s stock market fell in early trading on Wednesday following news of the missile incident, while other Gulf markets also showed weakness.

What happens next?

The immediate focus will be on whether the missile incident remains isolated or becomes part of a broader escalation.

Iran has denied launching the missiles, while the UAE maintains that they originated from Iran. The two sides therefore have directly conflicting accounts of the incident.

At the same time, the diplomatic situation between Washington and Tehran remains unsettled. Trump says there are no talks currently taking place, while Iranian officials have indicated that Tehran remains open to dialogue under its own conditions.

For the UAE, the latest incident is a reminder that the security situation can deteriorate quickly even after periods of relative calm.

For global markets, the bigger concern may be what happens next in the Strait of Hormuz. Any prolonged disruption to the waterway could affect energy supplies, shipping costs and oil prices well beyond the Gulf.