United Arab Emirates is reportedly considering freezing billions of dollars in Iranian assets, a move that could severely limit Iran’s access to foreign currency and global trade networks.

Officials in the UAE have privately warned Iran about potential restrictions, which could target accounts linked to the Islamic Revolutionary Guard Corps (IRGC) and shadow companies, including those based in the U.S. Measures could also involve cracking down on illegal financial operations and limiting local currency exchange platforms, The Caspian Post reports via foreign media.

Experts note that the UAE has historically served as a financial hub for Iran to bypass Western sanctions, enabling oil sales and the transfer of funds, including for military development.

In addition to financial restrictions, the UAE is reportedly considering seizing Iranian ships to curb Tehran’s shadow fleet. Analysts say any steps taken by the Emirates would have major implications, as the country serves as a key conduit between Iran and the global economy, according to Esfandyar Batmanghelidj, founder and CEO of the Bourse & Bazaar Foundation.

Publicly, the UAE emphasizes compliance with international sanctions and the protection of the integrity of the global financial system.

Tensions remain high, as Iran has previously targeted the UAE in retaliation against the U.S. and Israel, striking civilian sites including airports, Burj Al Arab, and Palm Jumeirah, with drones reportedly approaching Burj Khalifa.

UAE authorities are also considering possible military responses, including strikes on Iranian missile installations.