UAE agreed to unlock billions for Iran, sources say

UAE agreed to release billions in frozen funds to Iran to stop missile and drone attacks, with $3 billion already delivered, according to Reuters.internazionale
The deal emerged as UAE and Iranian security officials held their first face-to-face meeting since the U.S.-Israeli war began in February.economictimes
The UAE foreign ministry categorically denied the reports, calling them “entirely false and unfounded” in a statement posted on X.timesofisrael

UAE Moves to Unlock Billions for Iran as De-escalation Talks Advance

The United Arab Emirates has agreed to release billions of dollars for Iran in a tactical shift aimed at halting Iranian attacks on the Gulf state, Reuters reported on Friday, citing four sources with knowledge of the arrangement.internazionale

The Deal

Two regional sources told Reuters the UAE had agreed to release a total of $10 billion, with more than $3 billion already delivered. Two other sources put the total at $20 billion, saying the arrangement was reached in return for Iran stopping missile and drone attacks on the UAE. In exchange for the disbursement, Iran would halt strikes on the UAE and both sides would rebuild bilateral ties, including intelligence sharing and economic cooperation.jpost

The UAE categorically denied the reports. Its foreign ministry said in a post on X that “no frozen Iranian funds have been released, transferred, or facilitated through the UAE,” calling the allegations “entirely false and unfounded”.internazionale

Context of War and Diplomacy

The reported financial arrangement comes amid broader negotiations between Tehran and Washington on ending the U.S.-Israeli war with Iran, talks that diplomats say could involve the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under U.S. sanctions. Just days earlier, senior security officials from the UAE and Iran met face-to-face for the first time since the conflict began in late February, in what Bloomberg described as a “stark turnaround” in relations.economictimes

The UAE had been heavily targeted by Iran during the war. In early May, the UAE said it intercepted 15 missiles and four drones from Iran. In March, the Wall Street Journal reported that the UAE was considering freezing billions of dollars in Iranian assets to punish Tehran.jpost

Broader Implications

The reported shift underscores how Gulf states caught in the crossfire of the U.S.-Iran conflict have sought their own accommodations with Tehran. A senior UAE official said in late May there was only a “50-50” chance of the U.S. and Iran reaching a broader agreement to free up the Strait of Hormuz. Whether the reported bilateral arrangement holds — and whether it becomes a model for other Gulf states navigating the conflict — remains an open question as the wider negotiations between Washington and Tehran continue.risingnepaldaily