Former Iranian central bank advisor Mehrdad Sepahvand refuted US President Donald Trump's claims of an imminent collapse of the Iranian economy, but warned that the UAE's decision to cut trade ties with Iran could lead to an economic contraction of about 5% this year. Sepahvand noted that while the Iranian economy is indeed deteriorating under the weight of sanctions, it is far from collapse, with stores still well-stocked and no bank runs. However, the UAE is one of Iran's main financial gateways, and its severing of trade and financial ties will put pressure on exchange rates, increase trade costs, and push up inflation in the next two quarters.