Iran has fully rejected a United Arab Emirates allegation that it launched two ballistic missiles from Iranian territory on Tuesday. The UAE said one missile landed outside its territorial waters and the other fell into the sea within its waters, alleging that the missiles targeted maritime navigation. Iranian Foreign Ministry spokesperson Esmail Baghaei called the accusation baseless.

Baghaei said such statements would undermine efforts to strengthen trust among neighbouring countries and improve regional security. Tehran also urged neighbouring states to refrain from what it described as unfounded accusations. Iran said the actions of the United States and Israel had further complicated the situation in the Middle East.

Following the incident, the UAE suspended all commercial and financial transactions with Iran until further notice. It had earlier issued an alert over a possible missile attack. Iran also said the Strait of Hormuz would remain closed until a peace agreement is reached with the United States. The strait is described as a major energy and trade route used by vessels from the UAE and other Gulf countries.