The United Arab Emirates is considering freezing billions of dollars worth of assets linked to Iran as part of potential measures to punish Tehran over recent attacks connected to the ongoing conflict involving the United States and Israel, according to a report by The Wall Street Journal.
The report, published on Thursday, said Emirati authorities are weighing financial and maritime actions that could significantly restrict Iran’s access to foreign currency and global trade. However, Reuters said it could not immediately verify the report independently.
The UAE’s foreign ministry did not immediately respond to a request for comment from Reuters outside normal business hours.
Possible financial crackdown
Officials familiar with the discussions told the Wall Street Journal that UAE policymakers are considering several options, including freezing assets belonging to Iranian-linked entities operating in the Gulf state.
These measures could target UAE-based “shadow companies” allegedly used to disguise Iranian trade activities. Authorities are also reportedly examining stricter controls on local currency exchange houses, which officials believe are used to move money outside the formal banking system.
If implemented, the measures could form part of a broader financial crackdown on Iran’s alleged network used to bypass international sanctions.
A key focus of the potential crackdown would be financial accounts connected to the Islamic Revolutionary Guard Corps, the powerful Iranian military organization that Western governments frequently accuse of overseeing parts of Tehran’s covert financial operations abroad.
Possible maritime actions
In addition to financial steps, the report said UAE authorities are also discussing direct maritime action against Iranian vessels.
According to two officials familiar with the discussions, the UAE could potentially seize Iranian ships operating in regional waters if tensions escalate further.
Such actions would mark a significant escalation in pressure on Tehran.
Rising tensions in the region
The reported discussions come amid heightened tensions in the Middle East following coordinated military strikes by the United States and Israel against targets in Iran.
Those strikes, launched last Saturday, prompted Tehran to retaliate by firing missiles toward Israel and several Gulf locations hosting U.S. military facilities.
According to the Wall Street Journal, UAE officials have privately warned Iran that such measures could be taken if attacks continue.
It remains unclear whether or when the Emirati government might implement the proposed actions.
The situation highlights the growing regional strain as countries in the Gulf weigh how to respond to escalating hostilities involving Iran, Israel and the United States.
