The United Arab Emirates has begun talks with the United States about a possible financial safety net to protect its economy if continued aggression against Iran deepens the crisis in the Persian Gulf, The Wall Street Journal reported Monday, citing U.S. officials.
UAE Central Bank Governor Khaled Mohamed Barama raised the idea of establishing a currency swap line when he met with Treasury Secretary Scott Bessent and officials from the U.S. Treasury and Federal Reserve in Washington last week.
U.S. officials said the Emirati offered the offer as a precautionary measure, noting that while the country has so far avoided the most severe economic fallout from U.S. and Israeli aggression against Iran, it could still need financial aid if the situation worsens.
The negotiations reflect growing concerns in the United Arab Emirates (UAE) that a US and Israeli invasion of Iran could cause significant damage to the UAE’s economy and undermine its status as a global financial hub.
The US and Israeli invasion of Iran has already damaged the emirate’s oil and gas infrastructure, disrupted tanker traffic through the Strait of Hormuz, and cut off a vital flow of dollar-denominated oil revenues.
U.S. officials also said that Emirati representatives suggested that President Trump’s decision to attack Iran drew the country deeper into the conflict, creating economic risks whose effects may not yet be fully understood.
MNA