UAE to unlock billions of dollars for Iran, sources say
News of the previously unreported move coincides with the final stages of broader negotiations between Tehran and Washington to end the war; It could involve the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under U.S. sanctions, diplomats say.
The UAE has agreed to release a total of $10 billion, of which more than $3 billion has already been delivered, two regional sources told Reuters.
Also read: UAE, Iran hold first face-to-face meeting to ease Middle East tensions
Two other sources with knowledge of the arrangement stated that the total fund was $20 billion, adding that this move was accepted in exchange for stopping Iran’s attacks on the UAE. One of the sources with knowledge of the deal also said that the first tranche of $3 billion has already been made available.
Reuters was unable to determine whether the funds allocated for the transfers belonged to the UAE or originated from 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 tensions and promote peace. “The UAE’s foreign policy is guided by promoting de-escalation and de-escalation in the region while advancing lasting peace and stability,” the official said. he said. “The UAE supports efforts, including those carried out by the United States, to protect the people of the region from the repercussions of the conflict.”
IRAN LAST DIRECT ATTACKED THE UAE ON MAY 4
The White House did not immediately respond to a request for comment on the move.
In Washington, Vice President J.D. Vance said Friday that Iran will not be given funds to sign a deal or attend a meeting with the United States, adding that the potential deal is structured to ensure economic benefits flow to Tehran if it fulfills its obligations.
There was no response from Iranian officials to Reuters’ request for comment on this move.
None of the sources mentioned in this article will accept anonymity due to the sensitivity of the subject.
The arrangement marks a dramatic turn in UAE-Iran relations from the open hostility of much of the war, as Iranian attacks evacuated hotels in Dubai, sent some foreigners fleeing and shook the country’s reputation for security at the heart of its status as a leading business hub.
One of the sources with knowledge of the arrangement said the move offers a way to help resolve the dispute between the United States and Iran without either side crossing its red line: Iran can claim it has received compensation for war damages, Washington can insist it has paid nothing, and Abu Dhabi is framing the move as an investment in rebuilding regional trust while gaining its own security and Dubai’s hub status.
Another source with knowledge of the arrangement said that in exchange for payment, Iran would stop missile and drone attacks on the UAE and bilateral relations, including intelligence sharing and economic cooperation, would be rebuilt.
The source added that Iran has approached at least two Gulf Arab countries to make a similar arrangement.
Iran’s last known direct attack on the UAE was more than a month ago, with a May 4 attack on the Gulf state’s port of Fujairah in the Gulf of Oman.
The first source with knowledge of the deal said the talks began a few weeks ago but gained momentum when officials from Iran’s powerful Revolutionary Guard visited Abu Dhabi last week to meet Sheikh Tahnoun bin Zayed al Nahyan, the UAE’s national security adviser and Abu Dhabi’s deputy ruler, and stayed at his guest house.
This trip was followed by a visit by UAE officials to Tehran to discuss the details of the mechanism.
IRAN’S MAJOR ASSETS IN DUBAI
The UAE-Iran deal will unfold in a complex financial environment potentially involving Dubai, the UAE’s main commercial hub and one of Tehran’s most critical economic lifelines.
Dubai banks have long held significant deposits linked to Iran; Most of them have been immobilized under US sanctions that oversee the global dollar clearing system and have left foreign banks doing business with blacklisted Iranian entities in danger of being cut off from the American financial network.
On April 11, a senior Iranian source said the United States had agreed to release Iranian frozen assets held in Qatar and other foreign banks, but a US official immediately denied the claim.
The source, who spoke on condition of anonymity due to the sensitivity of the issue, told Reuters that unfreezing assets was “directly linked to ensuring safe passage through the Strait of Hormuz” and was an important issue in negotiations to end the conflict.
