As American bombs rain down and Iran fires back with missiles, it is the UAE that finds itself caught in the crossfire. Amid rising war tensions between the US and Iran on one side, and fears of Iranian strikes on Gulf countries on the other, reports of billions of dollars in frozen assets, gold, and aircraft moving from the UAE to Iran have caused a worldwide stir. According to recent reports, allegations have surfaced that the UAE transferred up to two tonnes of gold to Iran, along with billions of dollars in funds. This has left many wondering why the UAE would hand over such a massive amount of gold to Iran in the first place. The reasoning appears to be this: if the US attacks Iran and Iran retaliates, and that retaliation ends up targeting America’s allies in the Gulf, the UAE fears it could become the next target. It is against this backdrop that the UAE appears to be signalling to Iran that it does not see itself as an adversary.
Reports suggest that the UAE has agreed to release Iranian funds worth up to 10 billion dollars in total, of which more than 3 billion dollars is understood to have already reached Iran. The latest development involves 2 tonnes of gold, worth roughly 283 million dollars, along with the matter of 15 second-hand passenger aircraft that has also come to light. These moves are expected to ease some of the financial pressure currently facing Iran and provide relief to its aviation sector. This has become a headache for Trump. While Washington is working to impose maximum pressure on Iran, the UAE — a US ally in the Gulf — continues to maintain economic ties with Iran. The UAE appears to be walking a diplomatic tightrope, preserving its friendship with the United States while simultaneously striking a survival arrangement with Iran. The UAE’s decision stems from its desire to prevent the war from disrupting its oil supplies, transport routes, and investments, and to protect the wider Gulf economy from collapse.
Both countries have their own separate interests driving this arrangement. The UAE wants security within its own region, while Iran needs financial assistance and funds to find relief from US sanctions. The UAE is demonstrating that, in war, money, gold, and diplomacy can be just as powerful weapons as bombs and missiles. To avoid its own territory becoming a battleground, Abu Dhabi has chosen to hand over gold and funds in order to steer clear of the threat posed by Iran. At the same time, it has become increasingly clear to Trump that Iran cannot be easily brought to heel, with Gulf countries appearing to lean in support of Iran. Experts say that the real political manoeuvring in West Asia is only just beginning.