A US ally in the Middle East has finally cut off Iran — and it could be one of the biggest threats to the regime yet.
The United Arab Emirates, which serves as Tehran’s largest supplier of goods, suspended all trade with the Iran over the weekend — nixing $6 billion in cash that went to the regime from exports, as well as access to vital supplies from the outside world.
Dubai — the UAE’s thriving commercial pub — is by far Iran’s largest supplier of goods. The Emirati government finally got fed up with Iran following repeated missile attacks that triggered evacuations for the first time during the war.
The move not only threatens the $21.3 billion trade relations between the two nations, it also leaves Iran without its primary way to collect US dollars, Mark Kimmitt, a retired US general and former assistant secretary of state, told The Post.
“If the Emirates cease trade and blocks dollar flows, it could have a crippling effect on the Iranian economy,” Kimmitt said.
Dubai essentially served as Iran’s window to the world after years of being slapped 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 surpassing China as Iran’s most vital trading partner.
Iran imported about $14.8 billion worth of goods from the UAE during the first 10 months of the 2025 fiscal year, accounting for 30% of its total imports, according to the two countries’ trade data.
Dubai’s ports are the primary way Iran gets goods like phones, computers, tobacco and nuts.
Meanwhile, Iran exported around $6.5 billion worth goods to the UAE during the same fiscal period, nearly 15% of its non-oil exports.
Most notably, Iran also depended on the UAE for 70% of its fuel oil exports, making the UAE its largest market for the product.
Refined oil also come back in the opposite direction from Dubai — with gasoline and diesel imports from the UAE helping to offset Iran’s supply deficit.
The blow leaves Iran with fewer means to make money and import goods as its economy continues to plummet under the strain of US sanctions.
“In many ways, the embargo being put on by the UAE is even more significant than the embargo being put on by the United States,” Kimmitt told Al Jazeera.
The strains come as US Treasury Secretary Scott Bessent announced the start of the “Operation Economic Outcast” on Monday, calling on all nations to follow the UAE’s lead 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.