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.
Israel established a covert military installation in the Iraqi desert to support its air operations against Iran, according to a report by The Wall Street Journal, citing individuals familiar with the matter, including U.S. officials.
The report said the facility was used as a logistical hub for the Israeli Air Force and also housed special forces, as well as search-and-rescue units prepared to assist any downed pilots during operations.
According to the newspaper, the base was built with the knowledge of the United States shortly before the onset of what it described as a joint U.S.-Israeli military campaign against Iran.
The report added that Israeli forces conducted airstrikes against Iraqi troops on at least one occasion after they allegedly came close to discovering the site, in order to prevent exposure of the facility.
The existence of the installation reportedly came under threat in early March, when Iraqi state media said a shepherd had alerted authorities to unusual military activity in the area, including helicopter movements. Iraqi forces were subsequently dispatched to investigate.
The Wall Street Journal further reported that Iraqi troops were struck by Israeli air operations while approaching the area, based on accounts from sources familiar with the incident.
Later in March, Iraq submitted a complaint to the United Nations alleging that foreign forces were involved in attacks in the area and initially attributed responsibility to the United States. However, the report cited a source familiar with the matter as saying the U.S. was not involved.
At the order of U.S. President Donald Trump, the Defense Department on Friday released dozens of previously classified files on alleged UFO sightings to provide what it called “unprecedented transparency” to the American people, though analysts said many of the documents had already been made public.
The disclosure of documents, photos and videos of “unidentified anomalous phenomena” will be followed by future releases as more materials are declassified, the Defense Department said in a statement, Reuters reported.
Trump was the latest president to release U.S. government reports on UFOs, a disclosure process that began in the late 1970s. Experts said the batch of around 160 files released on Friday contained new videos of known sightings but gave no conclusive evidence of alien technology or extraterrestrial life.
The files include a 1947 report of “flying discs” as well as grainy photos of “unidentified phenomena” taken from the moon’s surface by the 1969 Apollo 12 lunar mission and a transcript of the Apollo 17 crew describing unidentified objects seen from the moon in 1972.
‘BRIGHT PARTICLES’ DURING APOLLO 17
Apollo 17 mission pilot Ronald Evans reported “a few very bright particles or fragments or something that go drifting by as we maneuver,” based on the transcript.
“Roger. Understand,” mission control replied.
“These files, hidden behind classifications, have long fueled justified speculation – and it’s time the American people see it for themselves,” Hegseth said in a statement.
The records release is likely to fuel fresh debate over government secrecy and the possible existence of life in the cosmos.
“Whereas previous Administrations have failed to be transparent on this subject, with these new Documents and Videos, the people can decide for themselves, “WHAT THE HELL IS GOING ON?” Trump said in a statement. “Have fun and enjoy!”
The move was welcomed by U.S. Representatives Tim Burchett and Anna Paulina Luna, both proponents of declassifying UFO files. Luna said an additional tranche of material was expected in about 30 days.
“The files show that UAP are not simply a matter of speculation or public curiosity,” Harvard University astrophysicist Avi Loeb said in an email to Reuters. “The government has collected records.”
The images from Apollo 12 and 17 were fascinating but could be the result of asteroid impacts on the lunar surface, Loeb said.
DISTRACTION FROM POLITICAL PROBLEMS?
Some critics cast the UFO disclosures as a distraction from Trump’s political woes, including the unpopular U.S. military campaign against Iran and public pressure to release further files tied to convicted sex offender Jeffrey Epstein.
“I really don’t care about the UFO files. I just don’t. I’m so sick of the ‘look at the shiny object’ propaganda,” former Republican U.S. Representative Marjorie Taylor Greene wrote on X.
UAP investigator Mick West said the administration of former President Joe Biden disclosed much of the same information as Friday’s release.
“They’re evidence of us not being able to identify a small white dot that’s a long distance away,” the Sacramento, California-based analyst said of the new UAP videos and images.
Independent journalist Leslie Kean said the release showed there was still a lot of government information on UAP that should be disclosed. Kean co-authored a 2017 New York Times story on a secret Pentagon UAP program, which prompted Congress to push for declassification of UFO documents.
“I think we’ve already proven the existence of UAP, but that doesn’t mean we’ve proven they’re alien or extraterrestrial or that we know what they are,” said Kean.
World
Trump says United States will get uranium from Iran
One of Trump’s central objectives in launching military strikes against Iran was to ensure Tehran does not develop a nuclear weapon.
President Donald Trump said on Wednesday the United States would get enriched uranium from Iran, as the two countries struggle to reach an agreement on ending the Gulf war, Reuters reported.
“We’re going to get it,” Trump told a reporter as he left a White House event.
One of Trump’s central objectives in launching military strikes against Iran was to ensure Tehran does not develop a nuclear weapon. Iran has yet to hand over more than 900 pounds (408 kg) of highly enriched uranium.
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