U.S. Considers Currency Swap Line for UAE Amid Iran War Economic Strain

The White House is weighing financial support for the United Arab Emirates through a potential currency swap line as the ongoing conflict with Iran disrupts the Gulf economy. A senior White House official told CNBC that the plan, still under discussion, could provide dollar liquidity to the UAE, though no formal request has been made and no concrete proposal is being drafted. The idea reflects concern over economic pressure in the region. The UAE and other Gulf states have suffered economic shocks after missile strikes and disruptions to oil flows through the Strait of Hormuz. While President Donald Trump said he would help if possible, he emphasized the UAE remains a close ally. Some lawmakers support exploring assistance, but others warn it may appear as a foreign bailout. Final approval for any swap line would rest with the Federal Reserve, which typically limits such arrangements to major global central banks.