Trump advisor vows US financial support for UAE if Iran war harms its economy
Kevin Hassett says Trump administration will assist Abu Dhabi if circumstances require it, but stresses currency-swap line would probably not be needed.
Washington DC — White House National Economic Council Director Kevin Hassett has affirmed that the US stands prepared to furnish financial support to the United Arab Emirates (UAE) should US-Israeli war on Iran and Tehran's retaliatory actions threaten to undermine the Gulf nation’s economic outlook.
In an interview with CNBC on Monday, Hassett described the UAE as "an incredibly valuable ally" and signalled 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 am sure the Treasury secretary will make every effort to help them out, should that be necessary," said Hassett.
The US President Donald Trump's adviser added that such support would "probably" not be needed and noted that he had not discussed the matter directly with Bessent.
Asked if the Strait of Hormuz remains shut and it continues to injure UAE's economy, how will US help its allies, Hassett hoped the situation won't get worse, stressing President Trump thinks the US-Iran talks "are moving forward very positively."
"And so I think that it probably won't be necessary, but again, these are very close allies. Secretary Bessett has shown nimbleness and the cleverness about helping our allies when they're in time with me."
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.
"Emirati officials haven’t made a formal request for a swap line, which would give the UAE. central bank inexpensive access to dollars to support its currency or shore up its foreign reserves in case of a liquidity crisis. In talks with the US in recent days, they have portrayed the proposal as preliminary and precautionary," WSJ said, citing US officials.
"But they have also argued that it was President Trump’s decision to attack Iran that entangled their country in a destructive conflict whose effects may not be over, some of the officials said," it reported.
Emirati officials warned US counterparts they might use the Chinese yuan or other currencies if dollars ran short, the Journal added.
While downplaying the need for emergency support, Hassett acknowledged that similar interventions have precedent.
The US last fall reached an economic stabilisation 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.
US-Iran talks and truce expiry
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 spokesperson Esmail Baghaei, although Tehran has shown reluctance to send diplomats to Pakistan for a second round of peace talks.
On Monday, Trump said US delegation lead by Vice President JD Vance is en route to Islamabad for a potential second round of talks with Iranians, but Tehran said it had yet to decide whether to attend.
After initial talks in Islamabad ended without an agreement earlier this month, both sides have accused the other of breaching a temporary truce that ends on Wednesday.
US has threatened to resume fighting if Tehran does not agree to a deal by Wednesday. Iran has vowed it will not be coerced or rushed into any agreement until its core demands are met in full.