UAE freezes Iran's assets as Israel says 500 targets hit in Lebanon

The United Arab Emirates has begun freezing Iranian assets, a source familiar with the matter told Al-Monitor on condition of anonymity, marking a sharp escalation in the war’s economic dimensions.

The UAE has long served as a financial hub for Iran, enabling it to evade Western sanctions, sell oil abroad and channel funds to the Islamic Revolutionary Guard Corps and regional proxies.

Hostilities between Israel and Hezbollah in Lebanon continue to mount. The Israeli military said Friday night local time that it had hit more than 500 targets in Lebanon since Hezbollah entered the war on Monday, adding that a headquarters used by the IRGC in Lebanon was hit today. Lebanon’s Health Ministry said on Friday that more than 200 people have so far been killed, while the country's social affairs minister said that over 100,000 have been displaced.

The conflict has also spilled into Iraq. Sabereen News, a Telegram channel affiliated with Iran-backed Iraqi militias, said Friday that militias had targeted a hotel in Erbil, in Iraqi Kurdistan. The US State Department warned earlier the same day that militias might target hotels frequented by foreigners in Iraq.

Meanwhile, after Iran’s president said on Friday that some countries had begun mediation efforts, US President Donald Trump said in a post on Truth Social that the only option for Iran is "unconditional surrender." Later on Friday, Trump held a meeting with US defense manufacturers who he said agreed to quadruple their production of precision munitions.