U.S. Treasury Secretary Scott Besant arrives to testify during a hearing of the Senate Committee on Appropriations, Subcommittee on Financial Services and the General Government at the Dirksen Senate Office Building on April 22, 2026 in Washington, DC.
Chip Somodevilla | getty images
Treasury Secretary Scott Besant said Wednesday that “many” oil-rich US allies in the Persian Gulf have requested financial support amid economic turmoil from the war with Iran.
Besant’s comments go further than White House claims Tuesday to CNBC, where an official said the US has not yet been formally asked by the UAE to set up a currency swap line, only that the topic has been discussed.
Such a swap line would provide liquidity to the UAE or other Gulf countries US dollar, But it is fraught with political risk as American consumers face higher prices for food, gas and other everyday purchases because of the war.
“Many of our Gulf partners have requested swap lines,” Besant said. “Swap lines, whether from the Federal Reserve or the Treasury, are meant to maintain order in the dollar funding markets and prevent disorderly selling of U.S. assets.”
“The swap lines will benefit both the UAE and the US, and as I said, many other countries, including some of our Asian allies (who have also requested them),” he said.
The war with Iran has caused huge losses to Gulf countries including UAE. Tehran fired missiles at US allies in the region, causing damage to economic infrastructure. Iran’s closure of the Strait of Hormuz has also blocked oil revenues which are vital to the Gulf countries.
Currency swaps may also be necessary to ensure that the US dollar, which is dominant in almost all oil exchanges, remains in use.
President Donald Trump said Tuesday on CNBC’s “Squawk Box” that he would like to assist the UAE if possible.
The President said, “If I could help them I would.”
Sen. Steve Daines, R-Mont., who serves on both the Senate Finance and Foreign Relations committees, was supportive of a currency swap with the United Arab Emirates in a Tuesday interview with CNBC.
Danes said he thinks “(Besant) is moving in that direction, and I support her in that.”
However, Democrats are likely to take advantage of the political opening from currency swaps, especially with wealthy countries in the Middle East. The UAE has the highest per capita income in the world.
Senator Chris Van Hollen, D-MD, who questioned Besant on the potential currency swap at the hearing, highlighted the domestic economic conditions under which the swap would occur.
“The war in Iran has already cost us very dearly. In addition to lives lost, we’re talking about over a billion dollars a day in taxpayer money, we’re talking about higher gas prices, higher prices overall, and now we understand that the UAE is asking you to provide them a swap line through the Exchange Stabilization Fund,” Van Hollen said.
Van Hollen also noted recent reporting on UAE-US relations, including alleged investments by members of the Gulf country’s government in Trump family businesses and lax security around advanced artificial intelligence chips.
— CNBC’s Megan Casella Contributed to this report.