UAE Denies Deal To Unlock Billions To Iran Amid Talks To End War
The United Arab Emirates on Saturday denied reports it has agreed to unlock billions of dollars for Iran amid reports that the Islamic Republic is also engaged with the US in talks for releasing frozen funds of Tehran.
The UAE’s reported move was seen as a shift in policy after a wave of Iranian attacks on the Gulf state following the US-Israeli attacks on Iran, Reuters reported.
The UAE’s denial came after a slew of reports alleging the Emirate has agreed to release up to $20 billion in frozen assets to Iran, CNBC reported.
A Reuters report on Thursday had quoted three Iranian sources and an European official as saying the US an Iran was also engaged in talks to discuss a mechanism for releasing frozen funds of the Islamic Republic.
The report on release of funds by the UAE on Friday had also quoted four sources.
“The Ministry of Foreign Affairs affirmed that these allegations are entirely false and unfounded, stressing that no frozen Iranian funds have been released, transferred, or facilitated through the UAE,” the government told CNBC in a statement.
The frozen funds issue came into spotlight amid reports that Tehran and Washington have reached a consensus on ending the war.
The UAE denial also comes after President Donald Trump on Thursday rejected Iran’s account of a deal with the US, saying it has “NOTHING to do with the terms that were agreed to.”
On Friday, Pakistan, a mediator between the Iran and the US, confirmed that “a final, agreed upon text of the peace deal has been reached and Pakistan is now working closely with both sides to finalize the next steps.”
Amid ongoing intense mediation efforts by Pakistan, we are fully aware of incessant misinformation campaign being waged by those who want to sabotage the peace deal. Setting aside the noise, we can confirm that a final, agreed upon text of the peace deal has been reached and…
— Shehbaz Sharif (@CMShehbaz) June 12, 2026
The reports on UAE’s move to unlock Iranian funds also gained credence as the Gulf emirate was spared of any attacks by Tehran over the past week. Tehran’s strikes were aimed at Kuwait and Bahrain during the period.
An earlier report by the news agency had attributed the UAE’s reported decision to unlock the funds as a step to end a wave of attacks on Emirati military targets and infrastructure since the start of the US-led war on February 28.
Regional sources put the funds at $10 billion, and said nearly a third of it had already been delivered. Two other sources had put the funds to be released to Iran at as much as $20 billion.
It was not clear if the funds in question belonged to the UAE or were part of frozen Iranian accounts held in the UAE banking system. Iran had reportedly used Dubai as a financial hub to bypass sanctions.
The Islamic Republic had parked funds gained from selling oil abroad and reportedly channeled the proceeds to ots regional proxies in the Middle East. It also indirectly used it for military programs, according to a report by a US think tank.
The report also assume significance as the US has been mounting pressure on the UAE to crack down on the financial network that feeds Iran’s proxy initiatives.
