In response to attacks by the US-Israel coalition, Iran has increased military pressure on its neighbors in the Middle East. This has caused serious concern in Gulf countries, including the United Arab Emirates (UAE).
Modern.az reports that in recent months, Iranian authorities have intensified drone and missile attacks over Abu Dhabi and Dubai, severely undermining the security strategies of the monarchies. Tehran views these attacks not only as operations targeting symbolic and military objectives but also seeks to influence financial channels and currency flows in the region.
According to reports, the UAE is already considering freezing billions of dollars worth of Iranian assets. This step is not only a means of financial and economic pressure but could also serve as a form of compensation against Iran's strategy of pressuring Gulf countries through tension and military operations. If the UAE implements this step, Tehran's access to foreign currency and integration into global trade networks will be severely restricted.
Iran's Islamic Revolutionary Guard Corps (SEPAH) and its affiliated shadow companies conduct large-scale financial flows through companies in the UAE, particularly to finance oil and weapons programs. According to the US Department of the Treasury, 62% of these operations in 2024 were carried out through Dubai-based companies. The UAE's blocking of these financial flows through asset freezes and sanctions could severely limit Iran's clandestine financial capabilities.
The UAE will implement the step selectively. In the first phase, accounts linked to SEPAH and its security structures will be targeted. This will effectively paralyze the use of financial and military resources by Tehran. This is considered a strategic step also supported by the US, as it is one of the most effective ways to halt Iran's clandestine financial operations.
However, the risks of this process are also significant. Tehran could retaliate by attacking the UAE's energy infrastructure. Furthermore, hundreds of thousands of Iranians residing in the country and regional business ties could affect the UAE's reputation. Nevertheless, UAE officials have already implemented robust procedures for dealing with sanctioned individuals and companies. Previous experiences show that Dubai's financial center is capable of taking serious steps to comply with Western sanctions and protect the integrity of the international financial system.
The freezing of Iran's financial and military resources will not only affect its currency reserves but also create long-term financial difficulties for Tehran. Despite SEPAH's financial interests, halting currency flows and freezing assets will make it more challenging for the Tehran regime to continue its military operations. Analysts state that if the UAE implements this step, a historic turning point will occur in Gulf politics, and the financial and geopolitical superiority of the monarchies in the region over Iran will strengthen.
A tense balance is forming between Iran's response to the US and Israel coalition and the UAE's financial repression. Restricting Tehran's access to foreign currency is not merely "throwing money away" but will also impose significant limitations on the Tehran regime's regional military strategy. It is reported that Iran's strategy of pressuring Gulf countries can be neutralized by the UAE's selective but stringent financial and security measures.
Consequently, the steps taken by the UAE could change not only the financial and economic sphere but also the political balance in the region. The freezing of Iranian assets and the blocking of currency flows will not only limit the Tehran regime's military operational capabilities but also weaken its regional influence. The implementation of this step in the Gulf could have long-term effects on both the global financial system and regional geopolitics.
