The United Arab Emirates has suspended all trade, commercial and financial transactions with Iran until further notice after reporting that two ballistic missiles launched from the direction of Iran fell into the sea. The UAE said one missile entered its territorial waters and the other landed outside them, while assessments indicated both were aimed at maritime traffic. Iran denied launching the missiles. The decision threatens a major trade, payments and re-export corridor through Dubai, which has been described as Iran’s largest source of imports and a conduit for roughly one-third of imported goods. Mehrdad Sepahvand, a former economic adviser to the Central Bank of Iran, said the rupture could pressure Iran’s exchange rate, raise trade costs and fuel inflation over the next two quarters, estimating growth at about minus 5% for now. He said, however, that Iran was not yet facing economic collapse or a banking panic. The World Bank estimated Iran’s GDP contracted 2.7% in the year ending March, while inflation reached 62.2% in February and food-price inflation hit 99%.