The United Arab Emirates has joined Saudi Arabia and Qatar in urging US President Donald Trump to give negotiations a chance in the ongoing Iran conflict, according to multiple reports. The coordinated push comes as Gulf states fear any retaliation from Tehran could plunge regional economies into chaos. In separate calls with Trump, leaders of the three US allies said military action won't achieve America's long-standing goals with Iran, with the UAE expressing a 50-50 chance that they will reach an agreement with Iran. The conversations were prompted by the countries' shared wariness of a repeat of the situation between late February and early April, when Iran and Tehran-backed militant groups in Iraq retaliated by firing thousands of drones and missiles across the Gulf, killing scores of people and causing billions of dollars-worth of damage to ports and energy infrastructure.
The Asian Infrastructure Investment Bank (AIIB) has launched a $10 billion fund facility to support member countries affected by the economic fallout of the ongoing Middle East conflict, according to reports from PTI. The Beijing-headquartered bank announced the newly launched Energy, Food Security and Economic Resilience Facility, which will be available to member countries whose development prospects have been affected by the conflict that has triggered energy disruptions across several parts of the world. The facility could support response programmes and resilience-building measures linked to the economic fallout of the conflict, while also helping infrastructure companies and financial intermediaries meet short-term working capital, refinancing and business continuity requirements.
According to AIIB, the facility will provide a time-bound financing envelope of up to $10 billion over two years to offer exceptional financing support to its members and clients in addressing their acute needs for energy security, food security and economic resilience. The financing support will include fast-disbursing budgetary assistance, funding for critical expenditures and imports, and liquidity support to affected countries and institutions. This exceptional financing support will be crucial for member countries facing immediate challenges from the ongoing Middle East conflict.
India holds a significant position in the AIIB structure, serving as the second-largest shareholder in the China-led multilateral lender after China, as reported by PTI. This strategic position provides India with enhanced influence and access to the bank's resources during times of crisis, particularly relevant given the current Middle East conflict's impact on regional economies. The UAE's recent decision to leave OPEC, an oil cartel led by Saudi Arabia, has also highlighted the complex dynamics within the Gulf Cooperation Council, with the UAE's foreign ministry stating it continues close coordination with GCC member states alongside regional and international partners.
The ongoing conflict has created significant economic challenges for Gulf states, with Iran and its allies still having plenty of firepower despite Tehran's military being battered during the war. The threat to Gulf countries was underscored by a recent drone attack on a UAE nuclear-power plant, which Abu Dhabi blamed on Iran-supported militias in Iraq. The closure of the Strait of Hormuz has choked off many of the GCC countries' oil and natural gas exports, with energy prices soaring and the conflict increasingly unpopular with Americans. While Trump has vacillated between threatening massive airstrikes and saying countries are closing in on a peace accord, the UAE's senior advisor Anwar Gargash warned that "the Iranians have always over-negotiated" and hopes they don't do that this time because the region needs a political solution.
