The United Arab Emirates are considering freezing Iranian assets worth billions of dollars held in the country. This was reported by The Wall Street Journal, citing sources familiar with discussions within the Emirati leadership. According to these sources, Emirati officials have already privately warned Iranian representatives about possible retaliatory measures following missile and drone launches targeting the country’s territory. In recent days, Tehran has carried out strikes against several states in the region that it considers allies of the United States, including the United Arab Emirates, Bahrain, and Kuwait.
For many years, the United Arab Emirates have served as one of the main financial hubs for Iranian companies and individuals. After Western sanctions tightened, many Iranian business structures relocated their operations to the Emirates, taking advantage of the country’s banking and commercial infrastructure. Through intermediary companies registered in the UAE, Iranian entities were able to continue exporting oil and receiving foreign currency revenues. According to Western and regional sources, part of these funds was used to finance military programs and armed groups supported by Tehran across the Middle East. A potential asset freeze could therefore target not only official accounts but also a broad network of shell companies created to circumvent sanctions.
Sources cited by The Wall Street Journal say that the primary targets of these measures would be accounts and structures linked to the Islamic Revolutionary Guard Corps. The organization plays a central role in Iran’s military and economic system and controls a significant share of the country’s external financial operations.
In addition to directly freezing assets, Emirati authorities are also considering other pressure tools. Among them are large-scale inspections of currency exchange offices and financial intermediaries through which Iranian funds are transferred outside official banking channels. Such structures are often used for cross-border transfers and settlements outside the international banking system.
These financial measures are being discussed amid a rapidly escalating conflict in the region. On February 28, the United States and Israel launched large-scale strikes against Iranian territory. In response, Tehran expanded the geography of its attacks, launching drones and missiles at Israel as well as several Persian Gulf states hosting U.S. military bases. Iran claims it is targeting only American military facilities and those of its allies, but several strikes have also hit civilian infrastructure.
