The United Arab Emirates (UAE) is reportedly in discussions with the United States for a financial backstop to cover damages incurred during the ongoing war with Iran. Since the conflict began on February 28, the US has spent between $890 million and $1 billion daily, while Israel has expended $11.2 billion, with over half of that in the first 20 days. The UAE has suffered extensive damage, including to civilian infrastructure and energy facilities, prompting its Central Bank chief to seek a currency swap with the US Federal Reserve. This request comes amid concerns that the US may demand payments from Gulf nations to fund the war, as it did during the 1991 Gulf War. Meanwhile, Iran has accused the UAE and other Gulf states of breaching international obligations and is demanding $270 billion in reparations. The ongoing conflict has not only strained regional economies but also raised fears about a potential shift in oil transaction currencies, with the UAE hinting at using the Chinese yuan instead of the US dollar. As the situation evolves, the financial implications for both the US and Gulf nations remain significant.