The United Arab Emirates has strongly denied claims that it agreed to release billions of dollars to Iran following weeks of attacks during the ongoing war involving the United States and Israel. According to a Reuters exclusive, four sources alleged that the UAE had made a tactical shift, agreeing to unlock funds in exchange for halting Iranian strikes.
UAE Denies Funds Transfer as Reports Claim Billions Are Unlocked for Iran Amid Regional Tensions
Two regional sources told Reuters the UAE had agreed to release $10bn, with more than $3bn already delivered. Other sources suggested the figure could be as high as $20bn, tied to Iran stopping missile and drone attacks on the UAE.
UAE Foreign Ministry Response
Shortly after the report, the UAE Foreign Affairs Ministry issued a categorical denial: “The United Arab Emirates has categorically denied reports circulating in some international media outlets regarding the transfer or conversion of any funds from the UAE to the Islamic Republic of Iran, including claims concerning $3 billion.” According to Al Jazeera, the ministry stressed that “no frozen Iranian funds have been released, transferred, or moved through the UAE” and urged media outlets to rely on official sources.
Diplomatic Context
The alleged arrangement coincides with the final stages of broader negotiations between Tehran and Washington aimed at ending the war. These talks reportedly involve the release of tens of billions of dollars in Iranian oil revenues frozen under US sanctions. A UAE official, asked to comment, said the country’s foreign policy is focused on easing tensions: “The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region, while advancing lasting peace and stability.” One source described the move as a way to resolve conflict without either side crossing its “red line.” Iran could claim compensation for war damages, while Washington could insist it paid nothing. Abu Dhabi, meanwhile, would secure its own safety and protect Dubai’s reputation as a global hub.
Frozen Funds and Regional Security
Dubai’s banks have long held Iranian-linked deposits immobilised under US sanctions. Earlier in April, a senior Iranian source claimed the US had agreed to release frozen assets in Qatar and other banks, though Washington denied this. The last known Iranian attack on the UAE was on May 4, 2026, targeting Fujairah port. Talks reportedly accelerated after senior Iranian Revolutionary Guard officials visited Abu Dhabi last week to meet Sheikh Tahnoon bin Zayed Al Nahyan, followed by UAE officials travelling to Tehran. While Reuters could not confirm whether the funds originated from UAE reserves or frozen Iranian accounts, the reports highlight the delicate balance of diplomacy in the Gulf. The White House has yet to comment, and Iran has not issued an official response.
US and Iran Struck Deal to End War
Legit.ng earlier reported that the United States and Iran have reached an initial agreement aimed at extending a fragile ceasefire and reopening the Strait of Hormuz, a major global energy route, in a move that could ease tensions after weeks of conflict.
