Iran has denied claims that it carried out a missile attack on the United Arab Emirates (UAE) on Tuesday evening, calling the statements "completely unfounded," Foreign Ministry spokesman Ismail Baghai said, according to a report on Wednesday from the state news agency Irna.
The UAE Defence Ministry said two ballistic missiles fired from Iran towards the country had been intercepted.
The Emirati Foreign Ministry then announced that it would suspend all trade relations and financial transactions with Iran until further notice.
The two states maintain a significant trade partnership. Bilateral trade amounts to tens of billions of US dollars a year.