All articles tagged with #gulf allies
The Treasury is exploring using Iranian assets to help Gulf allies repair damage linked to Iran, directing authorities to estimate repair costs and determine which assets—such as frozen cash or hard assets—could be unlocked for rebuilding, while sanctions relief remains a factor as indirect talks continue.
Treasury Secretary Scott Bessent said multiple Gulf oil-rich allies have asked for currency swap lines to shore up dollar liquidity amid economic strain from the Iran conflict, including Hormuz disruptions; such swaps could stabilize dollar funding and the UAE’s finances but carry political risk, with the White House saying no formal request has been made and lawmakers weighing domestic costs.
Gulf states led by Saudi Arabia and the UAE privately press President Trump to extend the war against Iran until Tehran's leadership is decisively weakened, arguing Iran hasn't yet been subdued; while some allies push for tougher measures (including a possible ground invasion), others prefer diplomacy, reflecting divisions over objectives and the risk of regional spillover as Washington weighs its next moves.
As the Iran war drags on, Saudi Arabia and the UAE, joined by Qatar, have pressed Washington to address Gulf security by degrading Iran’s missiles and drones and by reshaping the regional security order—including formalizing Tehran’s role around the Strait of Hormuz—before the conflict ends, warning that a quick exit could leave them weaker, while U.S. officials publicly pursue similar objectives and Riyadh emphasizes de-escalation.