A US ally in the Middle East has finally isolated Iran, and could be one of the biggest threats to the regime yet. The United Arab Emirates, which is Tehran’s largest supplier of goods, suspended all trade with Iran over the weekend, eliminating $6 billion in cash going to the regime from exports, as well as access to vital supplies from the outside world. Dubai, the prosperous commercial pub of the United Arab Emirates, is by far Iran’s largest supplier of goods. The Emirati government finally had enough of Iran after repeated missile attacks led to evacuations for the first time during the war. The move not only threatens the $21.3 billion trade relationship between the two nations, but also leaves Iran without its main way to raise U.S. dollars, Mark Kimmitt, a retired U.S. general and former deputy secretary of state, told The Post. The United Arab Emirates served as a commercial hub for Iran, with billions in imports and exports before the war. Mariusz – stock.adobe.com Iran depends on the UAE trade network for food, consumer goods and industrial equipment. AP Photo/Vahid Salemi Dubai is Iran’s largest supplier of goods. (Tam Nguyen / NY Post Design) Tam Nguyen / NY Post Design “If the Emirates suspend trade and block dollar flows, it could have a chilling effect on the Iranian economy,” Kimmitt said. Dubai essentially served as Iran’s window to the world after years of being hit by Western sanctions, with traders buying and re-exporting consumer goods, food and industrial equipment to Iran. The two nations strengthened their economic cooperation in 2024, with the UAE overtaking China as Iran’s most important trading partner. Iran imported about $14.8 billion in goods from the United Arab Emirates during the first 10 months of fiscal 2025, accounting for 30% of its total imports, according to trade data from the two countries. The United Arab Emirates suspended all trade with Iran after its ports were repeatedly attacked during the war. REUTERS Dubai ports are the main way through which Iran obtains products such as phones, computers, tobacco and nuts. Meanwhile, Iran exported about $6.5 billion worth of goods to the United Arab Emirates during the same fiscal period, nearly 15% of its non-oil exports. Notably, Iran was also dependent on the UAE for 70% of its fuel oil exports, making the UAE its largest market for the product. People walk past shops and browse for products at Tehran’s Grand Bazaar on Monday. AFP via Getty Images Refined oil is also heading back in the opposite direction to Dubai, with gasoline and diesel imports from the United Arab Emirates helping to make up for Iran’s supply shortfall. The coup leaves Iran with fewer means to make money and import goods as its economy continues to decline under the pressure of US sanctions. “In many ways, the embargo imposed by the United Arab Emirates is even more significant than the one imposed by the United States,” Kimmitt told Al Jazeera. The tensions come as US Treasury Secretary Scott Bessent announced on Monday the start of “Operation Economic Pariah”, calling on all nations to follow the example of the United Arab Emirates and cut off all business with Iran. “The president is making phone calls to world leaders with specific requests to cease their interactions with the regime. We are already seeing results,” Bessent told reporters.
