U.S.Reported

Why Dubai may be vital to the Trump administration's economic war on Iran

Updated on: August 21, 2026 / 11:30 AM EDT / CBS News President Trump threatened this week to wield an "unprecedented" level of economic warfare against Iran , and Treasury Secretary Scott Bessent vowed to "collapse" the Islamic Republic regime with the "toughest sanctions in history." But the effectiveness of a bolstered economic campaign against Iran may rest largely on one close U.S. ally in the Persian Gulf, the United Arab Emirates. The Emirati city of Dubai, the Middle East's leading financial center, has long had a reputation as a hub for opaque economic activity. For Iran in particular, the city has offered ways to skirt international sanctions and gain access to vital funds from its sale of oil to countries like China. "About 80% of Iran's foreign currency exchange is done in Dubai. So Dubai has served as a major source for Iran's foreign currency," Miad Maleki, a former U.S. Treasury has in recent weeks targeted a number of shell companies linked to the UAE.

Missing media or need the complete publisher report? Open CBS News

Scoop News DeskDubai · Published Friday, August 21, 2026 at 3:30 PM UTCUpdated Friday, August 21, 2026 at 5:42 PM UTC

Coverage image for: Why Dubai may be vital to the Trump administration's economic war on Iran

Media link supplied by the Scoop Newsroom app.

Scoop News reporting summary

The text below was supplied by the Scoop Newsroom app. Third-party reporting is attributed in the source panel.

The targeted companies include Dubai-based HMS Trading FZE, which the Treasury said in a statement earlier this month, "plays a critical role in helping the Iranian regime retrieve revenue from its oil sales overseas, aiding some of Iran's most prominent exporters of petroleum." In the Aug. UAE officials previously said Iran attacked an Abu Dhabi National Oil Company vessel on Saturday as it transited the Strait of Hormuz, the Reuters news agency reported, citing the state Emirates News Agency. "I think the UAE and some of these other Gulf countries were getting a lot of hits, or they were feeling the economic effect of Iran's escalation and closure of the Strait of Hormuz.

Breaking news moves fast. Follow @Will466513 on X for breaking news alerts. Follow on X →

Transparent record

Story timeline

Dated changes to this report are shown here as they are published.

Version 2unpublished
Friday, August 21, 2026 at 3:49 PM UTC
Removed by Scoop Timeline eligibility policy
Version 3published
Friday, August 21, 2026 at 3:50 PM UTC
Updated on: August 21, 2026 / 11:30 AM EDT / CBS News President Trump threatened this week to wield an "unprecedented" level of economic warfare against Iran , and Treasury Secretary Scott Bessent vowed to "collapse" the Islamic Republic regime with the "toughest sanctions in history." But the effectiveness of a bolstered economic campaign against Iran may rest largely on one close U.S. ally in the Persian Gulf, the United Arab Emirates. The Emirati city of Dubai, the Middle East's leading financial center, has long had a reputation as a hub for opaque economic activity. For Iran in particular, the city has offered ways to skirt international sanctions and gain access to vital funds from its sale of oil to countries like China. "About 80% of Iran's foreign currency exchange is done in Dubai. So Dubai has served as a major source for Iran's foreign currency," Miad Maleki, a former U.S. Treasury has in recent weeks targeted a number of shell companies linked to the UAE.
Version 4unpublished
Friday, August 21, 2026 at 4:05 PM UTC
Removed by Scoop Timeline eligibility policy
Version 5published
Friday, August 21, 2026 at 4:06 PM UTC
Updated on: August 21, 2026 / 11:30 AM EDT / CBS News President Trump threatened this week to wield an "unprecedented" level of economic warfare against Iran , and Treasury Secretary Scott Bessent vowed to "collapse" the Islamic Republic regime with the "toughest sanctions in history." But the effectiveness of a bolstered economic campaign against Iran may rest largely on one close U.S. ally in the Persian Gulf, the United Arab Emirates. The Emirati city of Dubai, the Middle East's leading financial center, has long had a reputation as a hub for opaque economic activity. For Iran in particular, the city has offered ways to skirt international sanctions and gain access to vital funds from its sale of oil to countries like China. "About 80% of Iran's foreign currency exchange is done in Dubai. So Dubai has served as a major source for Iran's foreign currency," Miad Maleki, a former U.S. Treasury has in recent weeks targeted a number of shell companies linked to the UAE.
Version 6unpublished
Friday, August 21, 2026 at 4:21 PM UTC
Removed by Scoop Timeline eligibility policy
Version 7published
Friday, August 21, 2026 at 4:22 PM UTC
Updated on: August 21, 2026 / 11:30 AM EDT / CBS News President Trump threatened this week to wield an "unprecedented" level of economic warfare against Iran , and Treasury Secretary Scott Bessent vowed to "collapse" the Islamic Republic regime with the "toughest sanctions in history." But the effectiveness of a bolstered economic campaign against Iran may rest largely on one close U.S. ally in the Persian Gulf, the United Arab Emirates. The Emirati city of Dubai, the Middle East's leading financial center, has long had a reputation as a hub for opaque economic activity. For Iran in particular, the city has offered ways to skirt international sanctions and gain access to vital funds from its sale of oil to countries like China. "About 80% of Iran's foreign currency exchange is done in Dubai. So Dubai has served as a major source for Iran's foreign currency," Miad Maleki, a former U.S. Treasury has in recent weeks targeted a number of shell companies linked to the UAE.
Version 8unpublished
Friday, August 21, 2026 at 4:37 PM UTC
Removed by Scoop Timeline eligibility policy
Version 9published
Friday, August 21, 2026 at 5:10 PM UTC
Updated on: August 21, 2026 / 11:30 AM EDT / CBS News President Trump threatened this week to wield an "unprecedented" level of economic warfare against Iran , and Treasury Secretary Scott Bessent vowed to "collapse" the Islamic Republic regime with the "toughest sanctions in history." But the effectiveness of a bolstered economic campaign against Iran may rest largely on one close U.S. ally in the Persian Gulf, the United Arab Emirates. The Emirati city of Dubai, the Middle East's leading financial center, has long had a reputation as a hub for opaque economic activity. For Iran in particular, the city has offered ways to skirt international sanctions and gain access to vital funds from its sale of oil to countries like China. "About 80% of Iran's foreign currency exchange is done in Dubai. So Dubai has served as a major source for Iran's foreign currency," Miad Maleki, a former U.S. Treasury has in recent weeks targeted a number of shell companies linked to the UAE.
Version 10unpublished
Friday, August 21, 2026 at 5:25 PM UTC
Removed by Scoop Timeline eligibility policy
Version 11published
Friday, August 21, 2026 at 5:26 PM UTC
Updated on: August 21, 2026 / 11:30 AM EDT / CBS News President Trump threatened this week to wield an "unprecedented" level of economic warfare against Iran , and Treasury Secretary Scott Bessent vowed to "collapse" the Islamic Republic regime with the "toughest sanctions in history." But the effectiveness of a bolstered economic campaign against Iran may rest largely on one close U.S. ally in the Persian Gulf, the United Arab Emirates. The Emirati city of Dubai, the Middle East's leading financial center, has long had a reputation as a hub for opaque economic activity. For Iran in particular, the city has offered ways to skirt international sanctions and gain access to vital funds from its sale of oil to countries like China. "About 80% of Iran's foreign currency exchange is done in Dubai. So Dubai has served as a major source for Iran's foreign currency," Miad Maleki, a former U.S. Treasury has in recent weeks targeted a number of shell companies linked to the UAE.
Version 12unpublished
Friday, August 21, 2026 at 5:42 PM UTC
Removed by Scoop Timeline eligibility policy