The United Arab Emirates is considering cutting off Iranian access to billions of dollars held in the Gulf state, the Wall Street Journal reported Thursday.
The move could cripple Tehran’s access to foreign currency and global trade networks at a moment when its economy has been deteriorating, and the military conflict with U.S. and Israel has piled on more pressure.
Emirati authorities have warned Iranian officials that such a move was under consideration, the newspaper said, citing people familiar with the discussions, although no decision on whether, or when, to act has been reached.
UAE has long sought to balance its strategic alliance with the U.S. and its neighbor Iran, but Tehran’s strikes against the Gulf nation appears to be prompting a rethink in policy.
UAE’s capital city Dubai has been a crucial financial corridor for Iranian businesses and individuals seeking to bypass Western sanctions, selling oil abroad and channeling the proceeds into military programs and regional proxies, according to U.S.-based think tank Atlantic Council.
