ABU DHABI,— The United Arab Emirates is considering freezing billions of dollars in Iranian assets held in the Gulf country, a step that could limit Tehran’s access to foreign currency and international trade during the ongoing U.S., Israeli military confrontation with Iran, the Wall Street Journal reported on Thursday.

The Wall Street Journal WSJ said Emirati officials are discussing several possible actions. These include freezing assets connected to companies based in the UAE that are suspected of hiding Iranian trade activities.

The report said authorities are also studying a wider financial crackdown targeting currency exchange businesses that move money outside the formal banking system.

Officials familiar with the talks said these currency exchanges are often used to transfer funds beyond regulated financial channels.

The report added that if the UAE takes action against what it described as Iran’s shadow financing network, accounts linked to the Islamic Revolutionary Guard Corps could become a primary focus.

Two officials familiar with the discussions also told the WSJ that policymakers in the UAE are examining the possibility of maritime enforcement. This could include seizing Iranian ships.

The report said UAE officials have privately warned Iranian authorities that such steps are being considered. It added that it remains unclear whether or when the Emirati government might take action.

The developments come during a sharp military escalation involving the United States, Israel and Iran.

The U.S. and Israel launched coordinated airstrikes against Iran on February 28, 2026. The attacks killed Iran’s supreme leader Ayatollah Ali Khamenei and more than 40 senior military officials in Tehran and other cities.

Iran responded by launching multiple waves of missiles and armed drones toward targets in the Gulf region.

The attacks included strikes aimed at major airports, seaports, hotels and residential neighborhoods in Dubai and Abu Dhabi in the United Arab Emirates, according to the report.

(With files from Reuters, WSJ)

Copyright © 2026 Dubai Diplomacy. All rights reserved.

Your support matters! Consider buying us a coffee — every bit helps keep independent news alive.

Related posts:

UAE crackdown cripples Iran’s IRGC cash networks in Dubai financial hub UAE cancels residency visas for Iranians: UK-based media report U.S. weighs currency swap with UAE, Trump says UAE seeks U.S. financial lifeline as Iran war drags on, WSJ reports Is a Gulf NATO Really Possible? UAE used US, Israeli intelligence to hit Iran with dozens of strikes: WSJ UAE secretly conducted attacks on Iran, WSJ reports Gulf states press Trump to continue war until Iran is fully weakened