UAE to unlock billions of dollars for Iran, sources say
The United Arab Emirates has agreed to unlock billions of dollars for Iran, four sources said, in a tactical shift after weeks of Iranian attacks on the wealthy Gulf Arab state during the U.S.-Israeli war with the Islamic Republic.
Word of the move, which has not been previously reported, coincides with the final stages of broader negotiations between Tehran and Washington on ending the war, 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.
Two regional sources told Reuters the UAE had agreed to release a total of $10 billion, more than $3 billion of which had already been delivered.
Two other sources with knowledge of the arrangement put the total funds involved at $20 billion, adding that the move had been agreed in return for a halt to Iranian attacks on the UAE. One of the sources with knowledge of the arrangement also said a first tranche of $3 billion had already been made available.
Reuters could not establish whether the funds earmarked for the transfers belong to the UAE or originate in long-blocked Iranian accounts in the UAE banking system, or elsewhere.
But a UAE official, asked to comment on the transfer, said the country was trying to ease tension and foster 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 UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict.”
The White House did not immediately respond to a request for comment on the move.
In Washington, Vice President JD Vance said on Friday that funds would not be released to Iran for signing a deal with the U.S. or attending a meeting, adding that the potential deal is structured to ensure that economic benefits would flow to Tehran if it meets its obligations.
There was no immediate response from Iranian authorities to a Reuters request for comment on the move.
None of the sources cited in this article would agree to be identified due to the sensitivity of the matter.
The arrangement signals a striking pivot from the open animosity of UAE-Iran relations through much of the war, when Iranian attacks emptied Dubai’s hotels, drove some expatriates to flee and shook the reputation for safety that is central to the country’s position as a premier business hub.
One of the sources with knowledge of the arrangement said the move offered a way to help solve the conflict between the U.S. and Iran without either side crossing its red line: Iran can claim it extracted compensation for war damages, Washington can insist it paid nothing, and Abu Dhabi obtains its own security and Dubai’s hub status, while framing the move as an investment in rebuilding regional trust.
The other source with knowledge of the arrangement said that in return for the disbursement, Iran would halt missile and drone attacks on the UAE, and there would be a rebuilding of bilateral ties, including intelligence sharing and economic cooperation. [Continue reading…]