UAE reported to unlock billions for Iran as US-Iran peace deal advances, then issues denial

A tactical shift after attacks

The United Arab Emirates has agreed to unlock billions of dollars for Iran in what four sources described as a tactical shift after weeks of Iranian attacks on the wealthy Gulf Arab state during the broader US-Israeli war with Iran. The move, not previously reported, coincides with the final stages of Washington-Tehran negotiations to end the war. Two regional sources told Reuters the UAE had agreed to release a total of $10 billion; two others put the figure at $20 billion. One source with knowledge of the arrangement said a first tranche of more than $3 billion had already been made available. Reuters could not establish whether the funds belong to the UAE or originate in long-blocked Iranian accounts in the UAE banking system.

The UAE's foreign policy is guided by promoting de-escalation and reducing tensions across the region, while advancing lasting peace and stability.

The last direct Iranian attack on the UAE occurred on May 4, when missiles and drones struck the port of Fujairah on the Gulf of Oman, emptying Dubai's hotels and shaking the reputation for safety that is central to its economy.

What the sources say

Two regional sources told Reuters the UAE agreed to release $10 billion in total, with more than $3 billion already delivered. Two other sources put the total involved at $20 billion, adding that the move was agreed in return for a halt to Iranian attacks. Reuters could not determine whether the funds belong to the UAE itself or to long-frozen Iranian oil revenues held in UAE banks. None of the sources agreed to be identified. The report triggered immediate reactions: the White House did not immediately comment, and Iranian authorities did not respond to requests for comment.

UAE denial

Hours after the Reuters report, the UAE Ministry of Foreign Affairs issued a forceful denial. Afra al-Hameli, director of the strategic communications department at the ministry, wrote on X late on Friday night:

These claims are completely false and baseless, and no frozen Iranian funds have been unfrozen, transferred or conducted through the UAE.

The denial did not address the Reuters sources directly but dismissed the entire narrative of a funding arrangement.

Peace talks and US position

Vice President JD Vance said earlier on Friday that frozen funds would not be released to Iran merely for signing a deal or attending a meeting. He added that the potential deal is structured to ensure that economic benefits would flow to Tehran only if it meets its obligations. Separately, Pakistani Prime Minister Shehbaz Sharif, a key mediator, announced on the same day that the US and Iran had approved the final text of a peace agreement.

Peace has never been so close as it is now.

An American government official told AFP that Washington was "80–85 percent" confident of a successful outcome.

Regional implications

The reported arrangement signals a pivot from the open animosity that characterised UAE-Iran relations during the war, when Iranian attacks drove expatriates from Dubai and damaged the country's reputation for stability. Whether the funds are Emirati assets or Iranian revenues blocked by US sanctions remains unclear. The conflicting reports and the UAE's swift denial underline the sensitivity of any financial channel between Gulf states and Tehran as the ceasefire talks enter their final, fragile stage.