UAE moves to release billions for Iran during ceasefire push
Reuters reported the UAE agreed to free billions for Iran as Washington and Tehran work toward ending the war with the US and Israel.
By Lucas Ferreira · Science & Environment Writer
3 min read
The United Arab Emirates has agreed to make billions of dollars available to Iran, Reuters reported, citing four sources familiar with the matter. The move comes as the United States and Iran pursue negotiations aimed at ending Iran’s war with the US and Israel.
Two regional sources told Reuters the UAE had agreed to release $10 billion, with more than $3 billion already delivered. Two other sources with knowledge of the arrangement told Reuters the total involved was $20 billion and said the payment was tied to Iran stopping attacks on the UAE.
Reuters said it could not determine whether the money comes from UAE funds, Iranian accounts blocked in the UAE banking system, or other frozen Iranian assets held elsewhere. One source familiar with the arrangement said an initial $3 billion tranche had already been made available.
A UAE official, responding to Reuters about the transfer, said Abu Dhabi was seeking to reduce tensions and support peace. “The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region, while advancing lasting peace and stability,” the official said.
The official added that the UAE backs efforts, including those led by the United States, to shield people in the region from the effects of conflict. The White House did not immediately respond to Reuters’ request for comment, and Iranian authorities also gave no immediate response.
Reuters reported that the UAE move coincided with what diplomats described as the final phase of wider talks between Tehran and Washington. Those talks include the possible release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under US sanctions, according to diplomats cited by Reuters.
US Vice President JD Vance said earlier Friday that frozen funds would not be released to Iran immediately after any deal is signed with Washington, Reuters reported. Vance said any agreement would be set up so Iran receives economic benefits if it meets its commitments.
The arrangement marks a shift after weeks of Iranian attacks on the UAE during the war, according to Reuters. The attacks hurt Dubai’s hotel business, prompted some expatriates to leave and damaged the country’s reputation for safety, Reuters reported.
One source familiar with the arrangement told Reuters it would allow Iran to portray the money as compensation for war damage while letting Washington say it had not paid Tehran. The source said Abu Dhabi would gain security while protecting Dubai’s role as a business hub.
Another source with knowledge of the deal told Reuters that Iran would stop missile and drone attacks on the UAE in exchange for the disbursement. The same source said the arrangement would also include rebuilding bilateral ties through intelligence sharing and economic cooperation, and that Iran had asked at least two other Gulf Arab states for similar deals.
Reuters reported that Iran’s last known direct attack on the UAE was a May 4 strike on Fujairah port on the Gulf of Oman. A source familiar with the arrangement said talks began several weeks ago and accelerated after officials from Iran’s Revolutionary Guards visited Abu Dhabi last week to meet Sheikh Tahnoun bin Zayed al Nahyan, the UAE national security adviser and deputy ruler of Abu Dhabi.
UAE officials later traveled to Tehran to work out details of the mechanism, Reuters reported. Dubai banks have long held Iranian-linked deposits, many of them blocked by US sanctions that restrict access to the dollar-clearing system and threaten foreign banks that deal with sanctioned Iranian entities, according to Reuters.
This story draws on original reporting from Al Jazeera.