The United Arab Emirates (UAE) is exploring discussions with the United States regarding a potential currency-swap line to protect its economy from the ongoing conflict with Iran. UAE Central Bank Governor Khaled Mohamed Balama raised this proposal during meetings in Washington, highlighting concerns that the war could significantly impact the UAE's economy and its status as a global financial hub. With oil and gas infrastructure already damaged and tanker traffic disrupted through the Strait of Hormuz, the UAE is wary of the potential need for financial support if conditions worsen. If dollar liquidity tightens, Emirati officials have indicated a willingness to conduct oil transactions in alternative currencies, such as the Chinese yuan, which could challenge the US dollar's dominance in global trade. However, approval for a swap line from the Federal Reserve remains uncertain, as such arrangements are typically reserved for severe financial stress situations. Despite the UAE's robust foreign currency reserves, analysts warn of increased risks of capital flight and market volatility due to the conflict. The UAE is also considering freezing billions of dollars in Iranian assets, which could disrupt trade relations while strengthening its ties with the US. As Gulf states raise billions in debt markets to bolster liquidity, recovery from the conflict's disruptions may take longer than anticipated.