The United Arab Emirates (UAE) has decided to release billions of dollars to Iran in a move aimed at reducing tensions after Iranian attacks during the ongoing U. S.-Israeli war. This development, which had not been reported before, coincides with negotiations between Tehran and Washington to end the war. Officials believe these talks could lead to unfreezing significant Iranian oil revenues that have been blocked by U. S. sanctions.
In recent weeks, the UAE, which has faced numerous attacks from Iran, has not experienced any new strikes, while Iran has instead targeted Kuwait and Bahrain. The last direct Iranian attack on the UAE occurred over a month ago. Reports indicate that the UAE has agreed to release around $10 billion, with over $3 billion already delivered. Some sources claim that the total amount involved could reach $20 billion, and this is believed to be in exchange for Iran stopping its attacks on the UAE. However, it remains unclear whether these funds come from UAE accounts or frozen Iranian assets.
The UAE government has denied any reports of fund transfers and insisted that no Iranian assets have been released through its banking system. Officials emphasize that the UAE is focused on promoting peace and reducing tensions in the region, supporting U. S. efforts to mitigate conflict impacts.
The White House has not commented on these developments. Vice President JD Vance stated that funds would not be given to Iran for signing a deal or attending meetings, insisting that any potential agreement would be structured to ensure benefits to Iran only if it meets its commitments. There has been no response from Iranian officials regarding this matter.
This potential agreement represents a significant change from the strained UAE-Iran relations seen during the war, which impacted Dubai’s safety reputation and tourism. The arrangement may help ease the conflict between the U. S. and Iran without either side losing face—allowing Iran to claim compensation for war damages while ensuring the U. S. pays nothing. The UAE could also strengthen its security and maintain its status as a key business hub.
Iran’s missile and drone attacks on the UAE are expected to cease in exchange for the funds, along with a possible renewal of bilateral ties, including cooperation in intelligence and trade. Reports suggest that Iran has also reached out to other Gulf nations for similar deals.
Negotiations reportedly began a few weeks ago and intensified following meetings between Iranian Revolutionary Guards and UAE officials in Abu Dhabi. These discussions occurred alongside potential financial implications involving Dubai, which has significant Iranian-linked deposits, many of which are currently immobilized due to U. S. sanctions. An earlier claim made by an Iranian source about the U. S. agreeing to release Iranian assets held in Qatar and other banks was denied by U. S. officials and linked to security considerations in the Strait of Hormuz, a vital waterway.
With information from Reuters
