The United Arab Emirates (UAE) is considering freezing billions of dollars in Iranian assets held in the country, in response to drone and missile attacks launched by Tehran against targets in Emirati territory, reported the Wall Street Journalciting people familiar with the discussions.
According to a newspaper report published on Thursday night (5), UAE authorities have already warned the Iranian government, in private conversations, about the possibility of adopting economic measures against the country. It is not yet clear when or if the Emirati government will make the decision.
If implemented, the initiative could hit one of Iran’s main access routes to foreign currency and global trade networks, and significantly affect Tehran’s ability to operate in the global economic system.
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American analysts and officials have said for years that the UAE serves as an important financial center for Iranian companies and individuals seeking to circumvent Western sanctions. According to these assessments, the financial infrastructure created by Tehran in the country allows it to continue exporting oil and use the resources obtained to finance military programs and regional allies.
A possible financial offensive could include the freezing of accounts linked to shell companies based in the Emirates and used to hide commercial operations. Broader measures against exchange offices that move funds outside the formal banking system are also being discussed.
According to sources heard by the Wall Street Journalone of the main targets of these actions would be accounts associated with the Iranian Revolutionary Guard, an organization responsible for defending and sustaining the Iranian regime.
In addition to financial measures, Emirati authorities are also evaluating direct maritime actions, such as the seizure of Iranian ships, with the aim of weakening the so-called “shadow fleet” used to transport oil and operate from ports and shipping routes in the Emirates.
