Authorities in the United Arab Emirates (UAE) are considering freezing billions of dollars in Iranian assets in response to missile and drone launches targeting the country, sources told The Wall Street Journal. According to them, Tehran has already been warned about the potential financial measures.
Among the steps under discussion are blocking the assets of front companies registered in the UAE that are used to conceal Iranian trade, as well as freezing accounts linked to the Islamic Revolutionary Guard Corps (IRGC). In addition, authorities may launch large-scale inspections of currency exchange offices through which money is transferred to Iran outside the formal banking system.
These measures would limit the Islamic Republic’s access to global trade networks and foreign currency. This would be particularly sensitive for Iran’s economy, which is already under international sanctions and suffering from inflation. For many years, the UAE has served as a key financial and trade hub for Iranian companies and individuals, helping them circumvent Western restrictions, the newspaper notes.
In 2024, the United States identified $9 billion in transactions as linked to Iran, with more than 60% routed through intermediaries in the Emirates. This shadow infrastructure allowed Tehran to continue selling oil abroad and use the proceeds to finance its weapons programs.
Experts say a potential asset freeze would be one of the most powerful non-military tools of pressure on Iran. Any financial restrictions imposed by the UAE could significantly complicate Iran’s access to the global economy, explained Esfandyar Batmanghelidj, executive director of the analytical center Bourse & Bazaar. Sources also say that Abu Dhabi is considering forceful measures, including the seizure of vessels belonging to Iran’s so-called shadow fleet.
Iran carried out strikes against the UAE and other Persian Gulf countries hosting U.S. military bases after the United States and Israel launched a military operation against the Islamic Republic on February 28. During the attacks, civilian infrastructure was damaged, including airports in the UAE and the Burj Al Arab hotel in Dubai. Iranian drones were also intercepted near the world’s tallest skyscraper, the Burj Khalifa, and above the elite Palm Jumeirah district.
According to the UAE Ministry of Defense, three people were killed and 78 injured in the Iranian attacks. Between February 28 and March 5, Tehran launched 196 ballistic missiles and 1,072 drones at the Emirates.
