The United Arab Emirates has approached the United States for financial assistance as the Iran war continues to strain its economy. According to the Wall Street Journal, UAE Central Bank chief Khaled Mohammed Balama proposed a currency swap with the U.S. Federal Reserve to offset losses from missile strikes on oil and gas infrastructure and revenue disruptions caused by the Strait of Hormuz blockade. Informal talks have begun, though no official announcement has been made.

The UAE’s request follows heavy regional damage, including attacks on Dubai’s Fairmont The Palm Hotel, Fujairah’s oil terminal, and Amazon data centers. The U.S. has spent nearly $1 billion daily since February 28, while Israel’s war costs have exceeded $11 billion. Washington recently signaled it might seek war funding from Gulf states, but the UAE’s compensation demand could reverse that dynamic, forcing the U.S. to bear costs instead. Iran has separately demanded $270 billion in reparations from Gulf neighbors it accuses of aiding the conflict.

Analysts warn that adding a U.S. backstop to soaring war expenses could weaken the dollar’s dominance in energy trade, especially as the UAE explores yuan-based transactions with China.