Media: UAE may freeze Iranian assets as conflict escalates in region

The United Arab Emirates is considering freezing billions of dollars of Iranian assets held in the Gulf state, a move that could limit Iran’s access to foreign currency and global trade as tensions escalate following the recent US-Israeli military actions, The Wall Street Journal reports.

The Emirati Foreign Ministry did not respond to a request for comment outside business hours.

According to the WSJ, UAE authorities are considering several options aimed at curbing Iran’s financial activities. These include freezing the assets of UAE-based “shadow companies” allegedly used to disguise trade transactions, as well as a broad crackdown on local currency exchange houses that can be used to move funds outside formal banking channels.

If the UAE moves against what officials described as Iran’s shadow-financing networks, one of the main targets would likely be accounts linked to the Islamic Revolutionary Guard Corps (IRGC), the report said.

Policymakers in the UAE are also evaluating potential maritime measures, including the seizure of Iranian vessels, according to two officials familiar with the discussions cited by the newspaper.

The deliberations come as regional tensions intensify. The United States and Israel launched coordinated strikes on Iran on February 28, prompting Tehran to retaliate with missile launches toward Israel and several Gulf locations that host US military facilities.

According to the WSJ report, UAE officials have privately warned Iran about possible actions the Emirates could take against Tehran. However, it remains unclear when or whether the Emirati government will implement such measures.

By Vafa Guliyeva