On a Senate hearing, Treasury Secretary Scott Bessent said the U.S. would back a currency swap with the UAE, an oil‑rich ally hurt by Iran war damage. The move aims to keep dollar funding markets orderly and prevent disorderly sales of U.S. assets during current volatility in global financial systems today and support regional energy trading.

The UAE’s dirham is pegged to the dollar and its central bank holds ample reserves, but war‑related disruptions to Strait of Hormuz oil flows threaten export revenues. Bessent noted a swap would let the U.S. purchase dirhams, giving the Emirates more dollars to settle oil sales and stabilise foreign‑exchange markets for global energy trading settlements.

Senator Chris Van Hollen questioned the U.S. support, citing President Trump’s family ties to the UAE and criticizing the war’s cost. Bessent declined to name other Gulf or Asian requests, but noted the Treasury’s Exchange Stabilization Fund holds about $44 billion, having deployed $20 billion to Argentina last year in 2025 to stabilise global currency markets and support foreign investors.

The swap would reinforce U.S. dollar dominance while safeguarding American assets abroad. For investors, a smoother dollar market reduces currency risk in MiddleEastern trade. The Treasury’s discretion over the fund means the UAE’s exact needs remain unclear, but the proposal signals Washington’s willingness to use monetary tools to uphold global economic stability for global trade.