The United States is considering a currency swap arrangement to help ease the dollar liquidity shortage in the oil-dependent economy of the United Arab Emirates. President Donald Trump confirmed the possibility in an interview with CNBC, saying the UAE’s central bank had requested the measure following economic disruptions linked to the Iran-US conflict. Trump expressed surprise at the request from such a wealthy ally but said he viewed it positively, emphasizing the UAE’s longstanding friendship with the United States.

The potential support reflects broader instability in Middle Eastern economies caused by ongoing regional conflicts. The move comes as diplomatic friction grows between the UAE and Iran after Emirati authorities arrested several Iranian nationals. Iran’s foreign ministry condemned the arrests as baseless, urging the UAE to respect human rights and return to neighborly conduct.

The developments underscore the dual economic and diplomatic pressures facing Gulf states as they navigate the fallout from regional tensions and shifting alliances.