The UAE is considering freezing billions of dollars in Iranian assets.

According to a Wall Street Journal report citing sources familiar with the matter, Iran has launched more than 1,000 drones and missiles at targets within the United Arab Emirates (UAE). In retaliation for this action, the UAE is considering freezing billions of dollars worth of Iranian assets held in its possession, a move that could sever one of Iran's most vital economic lifelines. If the UAE takes action, Iran's access to foreign exchange and its participation in global trade networks will be severely restricted, and its domestic economy, already struggling with inflation, will be significantly hampered. UAE officials have privately warned Iran of potential action. According to informed officials, potential measures include freezing the assets of UAE-owned "shadow companies" used to conceal trade activities, and a comprehensive financial crackdown on local currency exchange institutions used to circumvent formal banking channels for transferring funds. In addition to financial measures, policymakers are also considering direct maritime action, such as seizing Iranian vessels. (Jinshi)