Iran's missile and drone strikes on the United Arab Emirates intensified after U.S.-Israeli operations against Iranian targets in late February 2026, with Tehran launching thousands of projectiles across Gulf states in retaliation. The UAE intercepted the majority using layered air defenses, though some strikes caused infrastructure damage, injuries, and limited casualties before a ceasefire took effect in April. Sporadic incidents persisted, including August missile launches into UAE waters and a November 10 attack damaging an ADNOC vessel in territorial waters. Abu Dhabi responded by closing its Tehran embassy, suspending trade and financial ties, and bolstering defenses through partnerships with the U.S., France, and others. Trader assessments reflect the risk of renewed escalation tied to unresolved Strait of Hormuz disputes, U.S.-Iran diplomacy, and Iran's pattern of targeting perceived adversaries hosting foreign forces, balanced against de-escalation signals and ongoing negotiations.