- Hassett says currency-swap line with UAE will likely not be necessary
The US is prepared to support the United Arab Emirates financially if the war with Iran worsens the Gulf country’s economic outlook, White House National Economic Council Director Kevin Hassett said on Monday.
Speaking to CNBC, Hassett described the UAE as “an incredibly valuable ally” and signaled that Treasury Secretary Scott Bessent would seek to assist Abu Dhabi if circumstances require it, although he said a currency-swap line would probably not be needed.
“The UAE has been an incredibly valuable ally throughout this effort, and I’m sure the Treasury secretary will make every effort to help them out, should that be necessary,” Hassett said.
He added that such support would “probably” not be needed and noted that he had not discussed the matter directly with Bessent.
Hassett’s remarks followed a Wall Street Journal report stating that UAE Central Bank Governor Khaled Mohamed Balama had discussed potential financial lifelines, including a currency-swap arrangement, during meetings in Washington last week with Bessent and Federal Reserve officials.
According to the report, Balama told US officials that the UAE may still require financial backing, even though it has so far avoided the worst economic fallout from the war.
While downplaying the need for emergency support, Hassett acknowledged that similar interventions have precedent. The US last fall reached an economic stabilization agreement to support Argentina’s peso ahead of the country’s midterm election, in a move that bolstered President Javier Milei, a close Trump ally.
His comments came amid renewed uncertainty over the US-Iran conflict despite a two-week ceasefire. Tensions escalated again over the weekend after US forces seized an Iranian cargo ship and Tehran closed the Strait of Hormuz, pushing oil prices higher and weighing on futures markets.
Iran is also reviewing a US proposal delivered during a visit by Pakistan’s army chief, Asim Munir, according to Iranian Foreign Ministry spokesman Esmail Baghaei, although Tehran has shown reluctance to send diplomats to Pakistan for a second round of peace talks.