World
UAE seeks US financial backstop amid Iran war fallout, warns of possible shift from dollar
Emirati officials indicated that while the UAE has so far avoided the most severe economic impacts of the conflict, it may require financial support if conditions worsen.
The United Arab Emirates has held discussions with the United States over securing a potential financial backstop as the fallout from the Iran conflict threatens to strain its economy, according to a report by The Wall Street Journal.
Citing U.S. officials, the report said the idea of support measures — including a possible currency swap arrangement — was raised by UAE Central Bank Governor Khaled Mohamed Balama during meetings in Washington with Treasury Secretary Scott Bessent, as well as officials from the Treasury and the Federal Reserve.
Emirati officials indicated that while the UAE has so far avoided the most severe economic impacts of the conflict, it may require financial support if conditions worsen. They also signalled that tighter dollar liquidity could push the country to use alternative currencies, including the Chinese yuan, for oil sales and other transactions.
Oil disruption and capital risks
The talks come as the conflict has disrupted key sectors of the UAE economy. Damage to energy infrastructure and restrictions on tanker traffic through the Strait of Hormuz have affected a major source of dollar-denominated revenue.
Officials cited in the report also pointed to rising risks of capital flight and market volatility, potentially challenging the UAE’s role as a regional financial hub.
The Emirati dirham remains pegged to the U.S. dollar and is supported by foreign currency reserves estimated at around $270 billion. However, analysts say the conflict has increased pressure through capital outflows and broader economic disruption.
US cautious on swap arrangements
Currency swap lines, typically managed by the Federal Reserve, are extended selectively during periods of financial stress. The Fed maintains standing arrangements with major economies including the UK, Japan, Canada, Switzerland and the euro area.
According to the report, U.S. officials said the Federal Open Market Committee is unlikely to approve a swap line for the UAE, citing relatively limited financial integration with U.S. markets.
During previous crises — including the 2008 global financial crisis and the COVID-19 pandemic — the Federal Reserve expanded swap facilities to stabilise global dollar funding markets. The U.S. Treasury has also provided alternative support in some cases, including a $20 billion swap arrangement for Argentina through the Exchange Stabilization Fund last year.
Regional impact and financial measures
The discussions follow a period of intense hostilities before a ceasefire took effect on April 17. UAE authorities said Iran launched more than 2,800 drones and missiles during the conflict, most of which were intercepted.
The disruption to oil flows forms part of a broader regional shock, which the International Energy Agency has described as one of the most severe supply disruptions on record.
Gulf states have moved to bolster liquidity in response. Abu Dhabi raised around $4 billion through private placements earlier this month, while Bahrain established an estimated $5 billion swap line with the UAE to support financial stability, the WSJ reported.
Outlook and policy considerations
A recent report by S&P Global said the UAE’s strong fiscal and external buffers should help absorb economic shocks, but warned that prolonged disruption to oil exports and infrastructure damage could weigh on the outlook.
The UAE has also considered measures such as freezing Iranian assets held within the country, a step that could further affect trade and financial flows.
Finance ministers and central bankers attending meetings of the International Monetary Fund and the World Bank in Washington said recovery is unlikely to be immediate. Saudi Finance Minister Mohammed Al-Jadaan noted that logistical disruptions to oil shipments could persist for weeks even after hostilities subside.
U.S. Treasury officials have also asked Gulf countries to outline reconstruction and financing needs, signalling readiness to provide support if required.
World
Lebanon says Israeli strikes in south of the country kill at least 11
Iran-backed Hezbollah said in a statement that the attacks would be “met with what they deserve”.
At least 11 people were killed in Israeli strikes in southern Lebanon on Saturday, the Lebanese health ministry said, some of the deadliest in the weeks since the country agreed to a U.S.-mediated peace framework with neighbouring Israel, Reuters reported.
The Israeli military said it struck Hezbollah infrastructure overnight in what it describes as a security zone in southern Lebanon in response to actions against its soldiers there.
Iran-backed Hezbollah said in a statement that the attacks would be “met with what they deserve”.
The framework leaves Israeli troops inside occupied southern Lebanon until Hezbollah is disarmed and the Lebanese army takes control, terms the group has rejected as surrender.
Lebanon’s official National News Agency said seven people were killed when Israeli warplanes struck a house in the southern village of Ansar, while four others were killed in a strike on the village of Deir El Zahrani.
The seven people killed in Ansar included three children and two women, NNA said, adding that a total of 19 people were wounded in the attacks.
At least 4,300 people have been killed in Lebanon in the latest round of hostilities since March 2.
NNA also reported other airstrikes across southern Lebanon, including on a strategic area north of the Litani River known as Ali al-Taher hill. One, targeting a valley next to Ansar, was the deepest strike into Lebanon in two months.
The office of Israeli Prime Minister Benjamin Netanyahu, in a statement on X, accused Hezbollah of violating the ceasefire and attacking Israeli soldiers leading to three injuries, read the report.
“The IDF (Israel Defense Forces) responded by striking the Hezbollah terror headquarters which ordered the attack,” the statement said. “Only later did the IDF learn that Hezbollah deliberately put civilians in that military compound.”
The Israeli military said in a statement it killed Ali Samir Al-Haj Hassan, a commander in Hezbollah’s elite Radwan Force unit and others when it struck “a central headquarters of the Radwan Force unit,” in Ansar.
“At the time of the strike, Hassan’s family was also present with him inside the military headquarters and, according to the claim, was harmed in the strike,” the statement added, emphasising that the family was not the target of the strike.
“The martyrs of the Israeli raid on the village of Ansar are not ‘military infrastructure’ and the women and children killed in it are not military targets,” Lebanon’s Prime Minister Nawaf Salam said in a post on X.
Nabih Berri, the speaker of Lebanon’s parliament, who is a Hezbollah ally, called in a statement for national unity and for the sponsors of the peace talks and ceasefire agreements to assume responsibility for stopping the war before it was too late.
Israel’s military seized a swathe of southern Lebanon during its war with Hezbollah earlier this year, triggered after the group fired at Israel two days into the Iran war. Israel has said it will keep its forces there to protect the north of the country from further attacks.
During a visit to southern Lebanon on Thursday, Defence Minister Israel Katz said Israel would not withdraw from areas under its control until Hezbollah was disarmed. A U.S. State Department official said a permanent Israeli military presence there was not consistent with commitments set out in the deal, Reuters reported.
Lebanese President Joseph Aoun, in a statement on X, said the attacks were a “clear message” aimed at the negotiations and U.S. efforts towards implementing the framework agreement.
Doron Spielman, international spokesperson for the Israeli Prime Minister’s Office, told Reuters Saturday’s strikes would “tighten up” negotiations.
“I think it should make the negotiations more serious and more real, because it highlights the whole reason we got into these negotiations in the first place,” he added.
World
At least 38 dead after Indonesia’s magnitude-7.7 earthquake, officials say
At least 38 people died after an earthquake of magnitude 7.7 and dozens of aftershocks struck off eastern Indonesia on Saturday, officials said, as rescue workers rushed to reach areas closest to the epicentre.
Tsunami waves of less than 1 metre (3 feet) were recorded in several areas of the Southeast Asian nation after the early morning tremor. The tsunami warning was lifted about three hours after the quake, Reuters reported.
“As of 15:00 (0800 GMT), the recorded figures are 38 fatalities, two people seriously injured, 11 with minor injuries,” Suharyanto, head of the National Disaster Management Agency, or BNPB, told a televised press conference. He added that approximately 2,000 people had fled to safer ground.
Earlier, rescuers in the port town of Maumere found 20 dead, six injured and two trapped under the rubble, said Fathur Rahman, head of the city’s rescue agency. Maumere is the main town in Sikka Regency on Flores Island in the east of Indonesia’s vast archipelago.
Suharyanto said residents remain trapped in several buildings in earthquake-affected areas and there are reports of landslides blocking several roads.
TEAMS HAVE YET TO REACH REGION CLOSEST TO EPICENTRE
Teams have yet to reach Nagekeo, the region closest to the epicentre, and communications signals there had been affected, Fathur told Reuters. Attempts to reach Nagekeo by car were blocked by landslides, while another team was attempting to go by ferry, he said.
About 2,000 residents in Nagekeo evacuated, and damage was reported to a number of houses, warehouses and government facilities, the BNPB said. Authorities also reported traffic congestion and power outages affecting parts of the regency, it said.
The governor of East Nusa Tenggara Province, Emanuel Melkiades Laka Lena, told a press conference at least five people died from collapsing rubble as they slept.
Parts of a building collapsed into dust and rubble as people screamed and ran in the street, a video on Facebook, verified by Reuters as being at a port in Maumere, showed.
“The quake was massive, the shock was so strong, we were resting at home with family,” said Nona, a 51-year-old resident of Talibura, a village in East Nusa Tenggara. “There were 13 of us inside the house and we all ran to save ourselves.”
Strong shaking was felt across East Nusa Tenggara, West Nusa Tenggara and parts of South Sulawesi, and residents in several areas reported shaking lasting about one minute, the BNPB said in a statement.
“Most of the people felt the shock and scattered out of their homes,” it said.
A hospital in the district of Ende in East Nusa Tenggara Province was moving patients outside, Kompas TV footage showed, and Kompas.com reported at least one landslide.
Indonesian geophysics agency BMKG recorded the first quake at 4.58 a.m. (2158 GMT) at a depth of 15 km (9 miles), followed by several aftershocks.
In 1992 the same area was hit by a magnitude-7.5 quake, causing extensive destruction at that time, the agency said.
Australia’s tsunami warning centre said the undersea earthquake would pose “no tsunami threat to the Australian mainland, islands or territories”.
Indonesia straddles the “Pacific Ring of Fire”, a seismically active zone, where different plates on the earth’s crust meet, creating a large number of earthquakes and volcanoes.
World
Five killed in Michigan shooting; suspect found dead after manhunt
Police did not release the names, ages, or genders of the victims, saying next-of-kin notifications were underway.
A man suspected of shooting and killing five people in northern Michigan on Friday was found dead after a manhunt, Michigan State Police said in a statement on social media.
One victim remained hospitalized in critical condition, the police said.
Troopers were dispatched around 11:40 a.m. local time (6:40 p.m. Israel time) to a home in Missaukee County, Michigan, after a report of a shooting. Officers found three people dead and a fourth person wounded, the state police said.
The suspect, identified by police as 39-year-old Chad Hickman, fled the scene before troopers arrived, prompting a manhunt. During the search for the suspect, investigators discovered another deceased victim at a second residence.
Troopers later located Hickman’s vehicle near a wooded area close to Whitlock Lake, where they found Hickman and another person dead, police said.
“This situation is heartbreaking for the community and challenging for the investigators involved,” said Lieutenant Ashley Miller, cited in the police statement.
Police did not release the names, ages, or genders of the victims, saying next-of-kin notifications were underway.
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