Sources claim UAE agreed to unlock billions for Iran; Abu Dhabi issues denial: Report

The United Arab Emirates (UAE) has denied reports that it agreed to release billions of dollars to Iran as part of an arrangement aimed at reducing tensions in the Gulf region, after a Reuters report cited multiple sources claiming that funds had been unlocked in exchange for a halt to Iranian attacks.

According to the Reuters report, four sources familiar with the matter said the UAE had agreed to make available billions of dollars to Iran following weeks of hostilities during the US-Israel conflict with the Islamic Republic.

Two regional sources quoted in the report said at least USD 10 billion was involved and that more than USD 3 billion had already been transferred. Two other sources placed the figure at around USD 20 billion and claimed the arrangement was linked to a halt in Iranian missile and drone attacks on the UAE.

However, the UAE Ministry of Foreign Affairs issued a statement rejecting the claims.

“The allegations are entirely false and unfounded,” the ministry said, specifically denying reports that frozen Iranian funds had been released, transferred or facilitated through the UAE, including claims relating to a $3 billion transfer.

Report links move to de-escalation efforts

Before the formal denial, a UAE official told Reuters that Abu Dhabi's foreign policy was focused on reducing regional tensions and promoting stability.

“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 report said the alleged arrangement coincided with ongoing negotiations between Tehran and Washington aimed at ending the conflict and potentially addressing Iranian funds frozen abroad under US sanctions.

Reuters said it could not independently determine whether the reported funds originated from UAE sources, frozen Iranian assets held within the Emirates or accounts located elsewhere.

The White House did not immediately comment on the report.

US Vice President J.D. Vance said on Friday that funds would not be released to Iran merely for signing an agreement with Washington, adding that any future economic benefits would depend on Tehran fulfilling its obligations under a potential deal.

Claims emerge amid shifting regional dynamics

According to the Reuters report, Iran has not carried out a known direct attack on the UAE since a reported strike on Fujairah port on 4 May.

Sources cited by Reuters claimed the proposed arrangement would involve not only financial measures but also a broader rebuilding of economic and security ties between the two countries.

One source alleged that Iran had approached at least two other Gulf states seeking similar arrangements.

The report further claimed that talks accelerated after senior officials from Iran's Islamic Revolutionary Guard Corps visited Abu Dhabi last week and met UAE National Security Adviser Sheikh Tahnoun bin Zayed Al Nahyan.

There was no immediate official response from Iran to the Reuters report.

The developments come amid continuing diplomatic efforts to reduce tensions in the Gulf and secure safe passage through the Strait of Hormuz, a critical route for global energy supplies.