Ongoing tensions between Iran and the United Arab Emirates stem from Iran's extensive missile and drone strikes on Emirati territory during the 2026 conflict, including repeated attacks on ports, energy sites, airports, and military facilities that prompted UAE air defenses to intercept hundreds of projectiles. In August 2026, Iran launched ballistic missiles toward UAE waters, leading Abu Dhabi to suspend all trade, commercial, and financial ties with Tehran and close its embassy in March. Recent developments include September 2026 disputes over three Gulf islands, Iranian parliamentary threats to target regional infrastructure if its security is threatened, and state media framing the UAE as aligned with U.S. and Israeli adversaries. These factors, alongside UAE cooperation with Israel on defense systems and ongoing regional escalation risks, shape trader assessments of future targeting.