The UAE releases billions of dollars to Iran
The United Arab Emirates has agreed to release billions of dollars to Iran, according to four sources, in a tactical shift following weeks of Iranian attacks on the wealthy Gulf state over its involvement in the US-Israeli war against the Islamic Republic.
Talk of this previously undisclosed move comes as broader negotiations between Tehran and Washington to end the war are in their final stages, talks that diplomats say could include the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under U.S. sanctions.
Two regional sources told Reuters that the UAE had agreed to release a total of $10 billion, of which more than $3 billion had already been delivered.
Two other sources familiar with the arrangement estimated the total amount of money involved at around $20 billion, adding that the move was agreed upon in exchange for halting Iranian attacks on the UAE.
One of the sources familiar with the arrangement also said that an initial payment of $3 billion had already been made available. Reuters was unable to verify whether the funds for the transfers originated in the UAE or came from long-frozen Iranian accounts within the Emirati banking system or elsewhere. However, an Emirati official, when asked about the transfer, said that his country was seeking to reduce tensions and promote peace.
The official said: “The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region, while pushing for lasting peace and stability.
The UAE supports efforts, including those made by the United States, to protect the people of the region from the repercussions of the conflict.”
Iran last directly attacked the UAE on May 4, and the White House did not immediately respond to a request for comment on the move.
In Washington, Vice President J.D. Vance said on Friday that funds would not be released to Iran in exchange for signing an agreement with the United States or attending a meeting, adding that a potential deal was designed to ensure economic benefits would flow to Tehran if it met its obligations.
Iranian authorities did not immediately respond to a Reuters request for comment on the move. None of the sources cited in this article agreed to be identified due to the sensitivity of the matter.
This arrangement marks a notable shift from the open hostility that characterized UAE-Iranian relations for much of the war, when Iranian attacks led to the evacuation of Dubai hotels, prompted some expatriates to flee, and shook the reputation for security that is essential to the country’s status as a prominent commercial hub.
One source familiar with the arrangement said the move provided a way to help resolve the conflict between the United States and Iran without either side crossing its red line: Iran could say it had extracted compensation for war damages, Washington could insist it had paid nothing, while Abu Dhabi secured its security and Dubai maintained its status as a regional hub, with the move presented as an investment in rebuilding trust in the region.
The other source familiar with the arrangement said that in exchange for the money, Iran would halt missile and drone attacks on the UAE, and that bilateral relations would be rebuilt, including intelligence sharing and economic cooperation.
The source added that Iran had contacted at least two other Arab Gulf states to conclude a similar arrangement.
The last known direct attack by Iran on the UAE was more than a month ago, specifically on May 4, when it targeted the Emirati port of Fujairah overlooking the Gulf of Oman.
The first source familiar with the arrangement said the talks began several weeks ago, but accelerated when officials from Iran’s powerful Revolutionary Guard visited Abu Dhabi last week to meet with Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security advisor and deputy ruler of Abu Dhabi, and stayed at his guest house. That visit was followed by a visit by Emirati officials to Tehran to negotiate the details of the mechanism.
Large Iranian assets in Dubai
The UAE-Iran arrangement is set to take place against a complex financial backdrop that could involve Dubai, the UAE’s main commercial hub and a vital economic lifeline for Tehran. Dubai banks have long held substantial deposits linked to Iran, much of which is now frozen under US sanctions that monitor the global dollar clearing system and expose any foreign bank dealing with designated Iranian entities to penalties.