UAE seeks U.S. financial lifeline as Iran war drags on, WSJ says

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UAE seeks U.S. financial lifeline as Iran war drags on, WSJ reports

April 20, 2026

DUBAI,— The United Arab Emirates has opened preliminary talks with Washington about a potential financial safety net amid fears that the ongoing war with Iran could deepen the country’s economic troubles, the Wall Street Journal reported, citing unidentified U.S. officials.

Khaled Mohamed Balama, governor of the UAE Central Bank, brought up the possibility of establishing a currency swap arrangement when he met with officials from the Federal Reserve and the U.S. Treasury officials during meetings in Washington last week, the Journal said.

Treasury Secretary Scott Bessent was among those who took part in the discussions, the report noted.

Emirati leaders told U.S. officials they have so far managed to avoid the worst economic effects of the conflict but warned they may still need a financial lifeline if conditions deteriorate, the Journal reported.

The talks reflect rising concern within the UAE that the war could chip away at its status as a leading international financial center, the Wall Street Journal said.

Officials worry the conflict could drain foreign currency reserves and push capital out of the country. No formal request for a swap line has been submitted, the Journal added.

The war has already caused damage to the UAE’s energy infrastructure and disrupted oil shipments through the Strait of Hormuz, cutting off a key source of dollar revenue for the country.

UAE Minister of State for International Cooperation Reem Al Hashimy said in an interview Sunday on ABC’s This Week that the country has been struck by more than 2,800 missiles and drones since the U.S.-Israeli military campaign against Iran began on Feb. 28, 2026.

The conflict started after the United States and Israel carried out joint airstrikes targeting Iran on that date. Iran responded with large-scale missile and drone attacks on Gulf targets, the report said.

Targets of those strikes included major airports, seaports, hotels, residential neighborhoods, and oil facilities in Dubai and Abu Dhabi, according to the report.

Emirati officials told the Wall Street Journal that while the country has so far kept the worst economic consequences at bay, the risk of further escalation remains a serious worry.

A swap line, they indicated, could provide a buffer against sudden financial shocks should the situation worsen.

(With files from WSJ, Agencies)