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According to Reuters, the agreement envisages the transfer of billions of dollars to Iran and is linked to efforts to reduce tensions and restore relations between Tehran and Abu Dhabi.
The United Arab Emirates (UAE) has agreed to release billions of dollars in funds to Iran, Reuters reported, citing four anonymous sources familiar with the deal, which had not previously been made public.
The release of Iranian funds has been a key issue in talks between the United States and Iran. Tehran has repeatedly stated, including through Foreign Minister Abbas Araghchi, that it will soon regain control of these financial assets.
According to Reuters, the UAE has agreed to make available a total of $10 billion, while more than $3 billion has already been transferred.
Two other sources briefed on the deal estimated the total amount of funds involved could be as much as $20 billion. They said the move was agreed in exchange for a halt to Iranian retaliation against the UAE.
It is not clear whether the funds to be transferred are Emirati financial assets or Iranian funds long blocked in the UAE banking system or in other jurisdictions.
An Emirati official, asked by Reuters about the issue, stated that the country is working to reduce tensions and promote peace in the region.
“The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region, while supporting long-term peace and stability,” he said. The official added that the UAE supports efforts, including those of the United States, to protect the people of the region from the consequences of conflicts.
Earlier, US Vice President JD Vance had stated that there would be no release of funds to Iran as a condition for signing an agreement with the US. He stressed that any potential agreement is designed so that economic benefits for Tehran depend on fulfilling its obligations.
Reuters notes that this agreement represents a significant change from the period of open hostility between the UAE and Iran during most of the conflict. The Iranian attacks, according to the agency, had negatively affected the tourism sector and the business climate in Dubai, damaging the security image that supports the country's role as a regional trade hub.
One of the sources said the deal creates a way to defuse the standoff between the US and Iran without forcing either side to make direct concessions. According to the source, Iran could present the deal as compensation for war damages, Washington could argue that it had not made payments, while Abu Dhabi secures its own security interests and Dubai's status as a trading hub.
Another source said that in exchange for the disbursement of funds, Iran would halt missile and drone attacks on the Emirates, while the two countries would begin rebuilding bilateral relations through information sharing and economic cooperation. The same source added that Tehran has contacted at least two other Gulf Arab countries for similar agreements.
Iran's last known direct attack on the United Arab Emirates, according to Reuters, occurred on May 4 at the port of Fujairah.
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