The United Arab Emirates (UAE) has reportedly agreed to unlock billions of dollars for Iran as part of efforts to reduce regional tensions and support ongoing diplomatic negotiations aimed at ending the recent conflict involving Iran, the United States, and Israel.
According to sources familiar with the discussions, the agreement could involve between $10 billion and $20 billion in funds. Some sources claim that an initial tranche of more than $3 billion has already been made available to Tehran. However, the UAE government has firmly denied reports that any frozen Iranian assets have been released or transferred.
The reported arrangement comes as Iran and the United States continue negotiations over a broader peace agreement that could potentially lead to the release of additional Iranian oil revenues currently frozen abroad under U.S. sanctions.
Sources said the understanding may have been reached after weeks of heightened tensions during the war, including Iranian missile and drone attacks targeting the UAE. In return for the financial support, Iran is reportedly expected to halt attacks against the Gulf state and rebuild diplomatic, economic, and intelligence cooperation with Abu Dhabi.
A UAE official stated that the country's foreign policy is focused on reducing regional tensions and promoting long-term peace and stability. The official emphasized support for diplomatic efforts led by the United States to prevent further conflict in the Middle East.
Neither the White House nor Iranian authorities immediately commented on the reported arrangement.
The last publicly known direct Iranian strike on the UAE occurred on May 4, when Fujairah Port was targeted. Sources said negotiations accelerated after senior officials from Iran's Revolutionary Guards visited Abu Dhabi for talks with senior UAE leadership, followed by meetings between Emirati and Iranian officials in Tehran.
Dubai has long served as an important commercial hub for Iranian businesses and investors. Large amounts of Iranian-linked funds are believed to be held within the UAE's financial system, though many remain restricted because of international sanctions.
If confirmed, the agreement would mark a significant shift in relations between the UAE and Iran, moving from open hostility during the conflict toward a framework focused on security cooperation, economic engagement, and regional stability.
The reported deal also coincides with wider diplomatic efforts to secure safe navigation through the strategically important Strait of Hormuz, a key route for global energy shipments.
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