The United Arab Emirates is considering freezing Iranian assets worth billions of dollars located in the country, The Wall Street Journal reports, citing sources.
According to sources from the publication, UAE officials have privately warned Iran about possible retaliatory measures in response to missile and drone launches over the country's territory by Tehran.
The WSJ notes that the UAE has been a financial hub for Iranian businesses and individuals seeking refuge from Western sanctions for many years. This has allowed Tehran to continue selling oil abroad and using the proceeds to finance weapon programs and affiliated groups.
In addition to freezing the assets of Iranian shell companies based in the UAE, the country's authorities are considering other options for retaliatory measures against Iran's actions, including large-scale inspections of local currency exchange points through which money is transferred outside official banking channels. According to WSJ sources, the main target of the UAE sanctions will be accounts linked to the Islamic Revolutionary Guard Corps (IRGC).
The US and Israel began bombing Iran on February 28. In response, Tehran started attacking Israel and countries it considers allies of Washington. Iranian drones and missiles are flying towards the UAE, Bahrain, Kuwait, and other neighboring states. Tehran claims that its targets are only American military facilities in these countries; however, attacks on civilian objects have also been recorded.
