Apr 28, 2026 19:21 pm IST

Opinion | Why One Of World's Wealthiest Countries Is Being Offered A 'Bailout' By Trump

To understand the urgency of the Gulf's requests, we must grasp a simple truth...

Syed Zubair Ahmed Syed Zubair Ahmed Columnist

Syed Zubair Ahmed Columnist

In 2024, the United States extended a $20 billion swap arrangement to Argentina during a turbulent period in that country. The move helped stabilise the Argentine currency, the peso, prevented a sharp devaluation and restored confidence in financial markets. The principle is to provide temporary access to dollars, calm the system and withdraw support once stability returns. It is not at all a tool designed for reassurance or rescue.

Wealthy Gulf nations, including the United Arab Emirates (UAE), are asking Washington for a similar swap arrangement amid the war in West Asia. Not in aid, but in access to US dollars. It would have been unthinkable that oil-rich Gulf states, which have carefully built a reputation as investment magnets, would seek US financial assistance - not in the form of loans, but by requesting billions of dollars in exchange for dirhams until the impact of the Iran war subsides.

US Treasury Secretary Scott Bessent has revealed, what was being quietly discussed behind the scenes, that "many" American allies in the Gulf and Asia want what are known as currency swap lines. It is not hard to understand why these rich countries need America's help. But, in times of crises, even wealthy nations can find themselves knocking on America's door.

The UAE on Tuesday dropped a bombshell, announcing it will walk out of OPEC and OPEC on May 1. The move comes against the backdrop of the Iran war, which has disrupted flows through the Strait of Hormuz and shaken global energy markets and amid its ongoing talks with the US over currency swap lines. It clearly means national survival now outweighs continuing to be part of the oil cartel.

With energy prices already quite high, Abu Dhabi wants maximum flexibility to pump more if routes reopen, reroute flows, or deploy supply in line with its own security and economic interests rather than collective quotas. Its engagement with Washington on currency swaps points to a deeper shift, aligning more closely with the US financial and security umbrella as regional risks intensify. In effect, the UAE is hedging on two fronts: breaking free from OPEC constraints in oil while securing dollar liquidity in finance. It means that in a war-torn market, agility and alliances matter more than bloc loyalty. Saudi Arabia will be watching with unease.

For now, let's focus on the dollar question. The war on Iran is no longer a story of missiles and military strategy. It is slowly turning into a story about the global scramble for........

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