The Emirates don’t need the money. They are laying down a marker: if we take fire because of Washington’s illegal war, we want something in return.
By Elfadil Ibrahim | That’s Enough Anti-War Coalition
WASHINGTON – The most striking moment in recent talks between UAE officials and the US Treasury wasn’t the suggestion of a currency swap line. It was the warning attached to it.
If the UAE runs out of dollars, Emirati officials reportedly told their American counterparts, it might be forced to use Chinese yuan instead of US dollars for its oil sales.
For a Gulf ally to openly float the idea of yuan-denominated oil trade is not a casual comment. It is a signal that the US dollar’s dominance – built largely on its monopoly over oil transactions – may not be as secure as Washington believes.
Why the UAE is threatening to pivot east
The UAE pegs its dirham to the US dollar. To preserve that peg, it needs stable access to dollars. That access is now under pressure – not because of Emirati mismanagement, but because of the illegal US-Israeli war on Iran.
The closure of the Strait of Hormuz, a direct consequence of Washington’s unprovoked military aggression, is depriving the UAE of oil revenue. Iranian missiles – launched in self-defense against US and Israeli strikes – have struck Emirati soil. Jebel Ali port has been hit. Dubai International Airport has been hit. Oil and gas infrastructure has been damaged.
The UAE did not ask for this war. In fact, Emirati officials were reportedly shuttling between Tehran and Washington before the bombs fell, urging restraint and explicitly assuring Iran that their territory would not be used as a launchpad for attacks.
That assurance did not matter. The US and Israel bombed anyway.
The numbers tell a different story
The UAE is not a country in financial distress.
- $285 billion in foreign reserves (end of 2025)
- $1 trillion net international investment position (assets minus liabilities)
- Highest possible credit rating affirmed by S&P Global last month
This is not a plea for help. It is a political warning.
The root grievance is not economic – it is political
UAE officials have made this clear. Their country did not ask to be put in this position. Since the illegal US-Israeli war began on February 28, the UAE has absorbed more Iranian missiles and drones than any other country – roughly 90 percent of which targeted civilian infrastructure, according to UAE Minister Reem al-Hashimy.
The Strait of Hormuz, through which the UAE ships its primary revenue generator – oil – has been effectively closed by the very war Washington started.
And now, the same ally that pledged to invest $1.4 trillion in the US economy is being asked to absorb missile strikes, rebuild damaged infrastructure, and maintain its dollar peg – all while the US offers no clear exit from the conflict.
The China card is real – and it works
The UAE is invoking the yuan as leverage. This threat has a precedent.
In 2023, Saudi Arabia began accepting yuan for Chinese oil purchases. The Biden administration responded by increasing diplomatic contact and offering a stronger US defense commitment.
Abu Dhabi has watched and learned.
- Crown Prince Khaled visited Beijing last week, signing dozens of agreements to boost economic and trade ties
- An influential Emirati commentator recently suggested it may be time to close US bases, calling them “a burden and not a strategic asset”
- The UAE is taking clear steps to boost investment exposure to China
What the UAE actually wants
Beneath the financial theater, the requests are concrete:
- Acknowledgment – Washington must recognize the economic damage its illegal war has inflicted on a country that was not party to the decision to attack Iran
- Compensation – The US should help with the cost of rebuilding missile defense systems and damaged infrastructure
- Consultation – The UAE wants a say in any deal with Iran, particularly regarding the Strait of Hormuz
- A real deal – Not a US exit that leaves a battered but more hardline Iran with its military intact
As al-Hashimy told ABC News, any deal with Iran “has to be a good deal” – one that addresses Iran’s “weaponization” of the Strait, its regional proxies, and its nuclear, missile, and drone programs.
The bottom line
The UAE understands it possesses immense leverage. Its swap line conversation is not a plea for help. It is a reminder that the US’ oldest Gulf ally has options – and the means to use them.
When an ally that hosts US military bases, holds trillions in dollar assets, and spent decades aligning with Washington begins openly discussing yuan oil deals, something has broken.
That something is trust. And trust fractures quickly when you launch an illegal war that puts your allies directly in the line of fire.
