DUBAI : The United Arab Emirates has agreed to release billions of dollars to Iran as part of a broader understanding to halt Iranian attacks and ease regional tensions, according to regional sources cited by Reuters.
The agreement emerged during the final stages of ongoing talks between Iran and the United States aimed at ending the war, sources said.
Two regional sources told Reuters that the UAE has agreed to release approximately $10 billion, with more than $3 billion already provided to Iran. However, two other sources indicated the total amount could reach up to $20 billion, describing the measure as an exchange for stopping Iranian attacks.
It remains unclear whether the funds originate from the UAE’s own coffers or consist of Iranian assets held in the Emirati banking system or other foreign accounts.
An Emirati official commented that the country is taking steps to reduce tensions in the region and promote peace.
Under the arrangement, Iran is expected to halt missile and drone attacks on the UAE. The understanding may also include the restoration of diplomatic relations between the two countries, intelligence cooperation, and improved economic ties, according to sources.
The development marks a significant shift in Iran-UAE relations. Iranian attacks during the war had disrupted business activities in the UAE and led to the displacement of foreigners, the news agency reported.
The agreement could help resolve the dispute between the United States and Iran, sources said, as Tehran could claim compensation for war damages through this mechanism, while Washington could maintain that it paid nothing directly.
According to sources, Iran has also approached at least two other Gulf countries to pursue similar arrangements.
The last direct Iranian attack on the UAE took place on May 4 at the port of Fujairah in the Gulf of Oman.
