UAE may use yuan if dollar access fails

The United Arab Emirates has opened talks with the United States about obtaining a financial backstop in case the Iran war plunges the oil-rich Persian Gulf state into a deeper economic crisis. According to the Wall Street Journal, the UAE has now informed the U.S. that it might have to use Chinese yuan or other currencies for oil transactions if it runs critically low on U.S. dollars. This warning underscores the acute financial pressure on the UAE as the prolonged closure of the Strait of Hormuz blocks its oil exports and drains its dollar reserves. The potential shift away from the petrodollar would mark a significant geopolitical and financial development amid the regional crisis.