US demands UAE exert economic pressure on Iran - report

The United Arab Emirates suspended financial and economic transactions with Iran following weeks of pressure from the Trump administration, The Wall Street Journal reported, citing sources.

"The move follows weeks of Trump administration cajoling of the U.A.E. to crack down on Iranian financial networks operating in the country," the report reads.

UAE policymakers worry Washington’s strategy of inflicting deeper economic pain on Iran could hurt the segment of Gulf states’ economies that relies on tourism and trade rather than oil, and eventually provoke further Iranian military retaliation, the people said

"Emirati officials also want to keep some channels to Tehran open so they retain a diplomatic option if the Trump administration’s pressure campaign fails," they said.