The UAE is reportedly considering freezing billions of dollars in Iranian assets and targeting Tehran-linked financial networks as tensions escalate in the Middle East following US–Israel strikes on Iran
The United Arab Emirates is considering freezing billions of dollars in Iranian assets held within the Gulf state as part of potential punitive measures against Iran following recent attacks linked to the escalating conflict involving the United States and Israel, according to a report by The Wall Street Journal.
Emirati authorities are weighing financial measures that could significantly limit Tehran’s access to foreign currency and global trade channels during the intensifying military confrontation, the report said.
Financial crackdown under consideration
According to the report, Officials in the UAE are exploring steps ranging from freezing assets tied to Iranian-linked “shadow companies” operating in the country to a broader crackdown on currency exchanges used to move funds outside the formal banking system.
These exchanges are believed to play a key role in facilitating cross-border transactions that allow Iranian businesses to bypass international financial restrictions.
If the UAE moves ahead with the measures, one of the primary targets could be financial accounts connected to the Islamic Revolutionary Guard Corps (IRGC), a powerful military and economic institution in Iran that Western governments accuse of managing extensive overseas financial networks.
Such actions could deal a significant blow to Tehran’s ability to maintain trade flows and access foreign currency at a time when the country is already facing mounting geopolitical pressure.
Maritime measures also discussed
According to the report, Emirati policymakers are also examining possible maritime steps, including the seizure of Iranian ships operating in regional waters.
Any such move would mark a significant escalation in economic and maritime pressure on Iran and could further strain already fragile shipping routes in the Gulf region.
The deliberations come after the United States and Israel launched coordinated military strikes on Iran over the weekend, sharply escalating tensions in the Middle East.
Tehran responded by firing missiles toward Israel and several Gulf locations hosting US military facilities.
Rising regional tensions
The conflict has heightened security concerns across the Gulf, with energy infrastructure and maritime routes seen as particularly vulnerable.
Earlier this week, smoke was seen rising from the oil industry zone in Fujairah after debris from a drone interception caused a fire, according to local authorities.
Officials cited by the Wall Street Journal said UAE authorities have privately warned Iran about the potential measures under consideration. However, it remains unclear whether the Emirati government will ultimately proceed with freezing Iranian assets or implementing other punitive actions.
The UAE has historically maintained economic ties with Iran even amid Western sanctions, with Dubai serving as a major trade hub for Iranian businesses. Any sweeping financial crackdown would therefore mark a significant shift in the Gulf state’s approach toward Tehran as the regional conflict intensifies.
With inputs from agencies.
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