Senior Emirati officials including Anwar Gargash have emphasized preparations for potential Iranian retaliation amid the ongoing US-Iran conflict, citing difficulties in reaching a diplomatic settlement and the risk of renewed escalation through missile or drone strikes. The UAE suspended trade ties with Iran after earlier 2026 attacks that targeted ports, infrastructure, and areas near the Barakah nuclear plant, while maintaining high-level bilateral talks focused on de-escalation and economic ties. Indirect US-Iran negotiations via Qatar continue alongside US threats of additional strikes, with recent drone incidents involving Bahrain underscoring Gulf-wide risks. Traders monitor these diplomatic and military signals for shifts in the probability of direct Iranian targeting of UAE territory before the market resolution date.