The UAE has asked the U.S. for financial assistance in case the war in the Middle East continues — WSJ
The United Arab Emirates government has begun preliminary consultations with the United States regarding the provision of emergency financial aid.
This was reported by The Wall Street Journal.
Abu Dhabi seeks to protect its economy from catastrophic consequences in the event of a further escalation of the conflict in the Middle East and a protracted war with Iran.
Last week in Washington, UAE Central Bank Governor Khaled Mohammed Balama discussed the possibility of establishing a currency swap line with representatives of the Federal Reserve and U.S. Treasury Secretary Scott Bessent.
Such an agreement would allow the Emirates to gain rapid access to cheap dollar liquidity to stabilize the national currency.
“The Emirates emphasized that they have managed to avoid the worst economic consequences of the conflict, but they may still need financial assistance,” sources familiar with the negotiations report.
Currently, the UAE faces serious challenges due to damage to its oil and gas infrastructure and the blockade of shipping in the Strait of Hormuz.
The inability to safely export oil by tanker has deprived the country of its main source of dollar revenue, threatening its status as a global financial hub.
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Additionally, Russia continues to evacuate its personnel from the Iranian nuclear plant, despite the declared ceasefire. Most of the staff have already been evacuated, but some remain on site. Officials in Moscow say the situation remains unpredictable.
Oil prices have surged again, approaching $100 per barrel. The reason is shipping disruptions through the Strait of Hormuz, despite the ceasefire with Iran. The market remains volatile following a sharp drop the previous day.
Gulf countries reported that on April 9, they did not record any new airstrikes from Iran. This is the first day without strikes since the war began in late February. The situation may indicate a temporary easing of tensions in the region.
Since the announcement of the ceasefire between the U.S. and Iran, only a few ships have passed through the Strait of Hormuz. Traffic remains limited and unstable. Against this backdrop, hundreds of oil tankers are waiting for permission to pass.
