UAE releases billions in Iranian funds to halt attacks as US-Iran ceasefire talks conclude
Sources confirm at least $3bn transferred from a total pool of $10bn to $20bn, marking a strategic pivot in Gulf security policy as Iranian missile strikes on Emirati territory cease.
The United Arab Emirates has agreed to unlock billions of dollars in funds for Iran, a move that coincides with the final stages of broader negotiations between Tehran and Washington to end the ongoing conflict. Four sources told Reuters that the arrangement was designed to halt Iranian missile and drone attacks on the UAE, allowing both sides to avoid crossing their respective red lines while securing Emirati borders.
Regional sources indicate the total value of the funds ranges from $10 billion to $20 billion, with at least $3 billion already transferred. One source stated the total involved was $20 billion, while two others cited $10 billion; both groups confirmed the first tranche of $3 billion had been made available. The disbursement aims to rebuild bilateral ties, including intelligence sharing and economic cooperation, in exchange for a cessation of hostilities.
The diplomatic shift follows high-level meetings last week, where officials from Iran’s Revolutionary Guard visited Abu Dhabi to meet Sheikh Tahnoun bin Zayed al Nahyan, the UAE’s national security adviser. This was followed by a visit by UAE officials to Tehran to negotiate the details of the mechanism. The last known direct attack by Iran on the UAE was a strike on Fujairah port on 4 May, more than a month ago.
A UAE official framed the decision as a commitment to regional stability, stating that the country’s foreign policy is guided by promoting de-escalation and reducing tensions. The official emphasised that the UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict. The White House did not immediately respond to requests for comment on the specific transfer.
US Vice President JD Vance clarified earlier on Friday that frozen funds would not be immediately released to Iran upon signing a deal with the US. He noted that the potential agreement is structured to ensure economic benefits flow to Tehran only if it meets its obligations. The arrangement signals a significant departure from the open animosity that characterised UAE-Iran relations for much of the war, which previously disrupted Dubai’s status as a premier business hub.
