UAE Warns It May Freeze Billions in Iranian Assets After Regional Attacks

After attacks by the Islamic Republic on several regional countries intensified during the conflict with Israel and the U.S., the United Arab Emirates warned Iranian officials that it may freeze billions of dollars in Iranian assets held inside the country.

According to a report by The Wall Street Journal, Emirati officials have privately warned Tehran that economic retaliation could follow the recent attacks, even though no formal action has been taken yet.

Sources familiar with the matter told The Wall Street Journal that officials in Abu Dhabi are reviewing several options, including freezing the assets of front companies, restricting exchange houses that move money outside the official banking system, and blocking accounts secretly used for money transfers and sanctions evasion.

If implemented, these threats could create more severe challenges for the Islamic Republic and the IRGC regarding access to foreign currency and international trade.

The report notes that although the UAE has delivered these warnings privately, officials have also discussed more direct measures, including the possible seizure of Iranian vessels, though no final decision has been taken yet.

If these options are executed, the Islamic Republic’s access to regional financial networks would be significantly curtailed, as the UAE has served for years as a vital hub for Iranian-linked companies and financial operations.

These developments come as tensions across the Middle East continue to rise. After U.S. and Israeli strikes targeted its positions, Iran launched missile and drone attacks across several Gulf countries in an effort to pressure Washington. As a result, governments in the region are now considering economic and financial measures in response to Tehran’s actions.

The UAE, Qatar, Saudi Arabia, Bahrain, Kuwait, Turkey, and Azerbaijan have all publicly condemned the Iranian regime’s attacks, warning that their patience and restraint are not infinite.

While the exact timing of the UAE’s decisions remains unclear, the emergence of these plans signals a significant increase in regional pressure on the Islamic Republic.