UAE to unlock frozen Iranian funds amid US ceasefire push | US-Israel war on Iran News
UAE to Release Billions for Iran Amid Ongoing Negotiations
June 12, 2026
The United Arab Emirates has agreed to release billions of dollars to Iran as part of a strategic shift following increasing Iranian assaults on the Gulf state amid its ongoing conflict with the United States and Israel. This development was confirmed by four sources to Reuters.
The announcement coincides with the final stages of negotiations between Tehran and Washington aimed at ending the war. Diplomats indicate these discussions involve the potential release of billions in Iranian oil revenues currently frozen in foreign banks due to U.S. sanctions.
According to two regional sources, the UAE has pledged a total of $10 billion, with over $3 billion already transferred. Two additional sources familiar with the arrangement suggested the total could reach $20 billion, with the funds tied to a cessation of Iranian attacks on the UAE.
While it’s unclear whether the funds originate from UAE resources or long-frozen Iranian accounts, a UAE official emphasized 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 advancing lasting peace and stability,” the official stated. The White House has yet to respond to requests for comments on this development.
Earlier today, Vice President JD Vance indicated that any frozen funds would not be immediately released to Iran upon reaching an agreement with the U.S. He emphasized that the deal is structured to ensure economic benefits would be contingent upon Iran meeting its obligations.
There was no immediate comment from Iranian officials regarding the arrangements. The sources involved chose to remain anonymous due to the sensitivity of the matter.
This arrangement marks a significant change in the UAE-Iran relationship, which has been characterized by open hostility during much of the war, resulting in reduced tourism in Dubai and a decline in the city’s safety reputation. One source highlighted that the arrangement allows Iran to claim compensation for war damages while the U.S. maintains it has made no direct payments.
In turn, Abu Dhabi aims to bolster its security and preserve Dubai’s status as a business hub while positioning the initiative as an investment in regional trust. Reports suggest that as part of the agreement, Iran would cease missile and drone attacks on the UAE and work toward rebuilding bilateral relations, including intelligence sharing and economic collaboration.
Additionally, the source reported that Iran has sought similar arrangements with at least two other Gulf Arab nations. The last documented attack by Iran on the UAE occurred over a month ago, with a strike on Fujairah port on May 4.
Sources revealed that discussions began several weeks ago but gained momentum following a visit by officials from Iran’s Revolutionary Guard to meet with UAE National Security Adviser Sheikh Tahnoun bin Zayed al Nahyan last week. This visit was followed by UAE officials traveling to Tehran to finalize agreement details.
Dubai banks have historically held substantial Iranian deposits, many of which are currently frozen due to U.S. sanctions that regulate the global dollar-clearing system. In April, a senior Iranian source suggested that the U.S. had agreed to release some Iranian assets held in Qatar and other countries; however, this assertion was denied by a U.S. official. The source indicated that unfreezing the assets is linked to ensuring safe passage through the Strait of Hormuz, a critical focus in ongoing negotiations.
