- UAE Foreign Ministry rejects transfer requests.
- Reuters cites four anonymous sources.
- The alleged deal involved up to $20 billion.
The United Arab Emirates (UAE) has denied media reports that the government has agreed to release up to $20 billion in frozen assets in Iran, with its foreign ministry saying claims that Iranian funds had been released were “totally false and unfounded”.
The UAE Foreign Ministry issued a statement on Saturday categorically denying reports of the transfer, “including allegations of $3 billion.”
The statement “claims that these allegations are entirely false and unfounded, emphasizing that no frozen Iranian funds were released, transferred or facilitated through the UAE.
The statement provided no further details.
The refusal came after Reuters reported that the United Arab Emirates had agreed to release billions of dollars to Iran, citing four sources, in what it described as a tactical shift after weeks of Iranian attacks on the wealthy Gulf Arab state during the US-Israeli war against the Islamic Republic.
News of the UAE’s announced decision to seek de-escalation, which had not previously been reported, coincided with the final stages of broader negotiations between Tehran and Washington on ending the war, talks that diplomats said could involve the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under U.S. sanctions.
Over the past month, the United Arab Emirates, which was heavily targeted by Iran at the height of the war, has been spared further strikes, while Iran has aimed its missiles and drones at Kuwait and Bahrain.
Iran’s last known direct attack on the UAE was more than a month ago: a May 4 strike on the Gulf state port of Fujairah in the Gulf of Oman.
Two regional sources said Reuters the United Arab Emirates had agreed to release a total of 10 billion dollars, of which more than 3 billion have already been paid.
Two other sources with knowledge of the deal put the total amount involved at $20 billion, saying the move was agreed in exchange for stopping Iranian attacks on the UAE.
One of the sources familiar with the deal also indicated that an initial tranche of $3 billion had already been made available.
Reuters could not establish whether the funds intended for the transfers belong to the UAE or come from Iranian accounts long blocked in the UAE banking system or elsewhere.
Earlier, at the request of Reuters Commenting on the transfer, a UAE official said the country was trying to ease tensions and foster peace.
“The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions in the region, while fostering lasting peace and stability,” the official said. “The UAE supports efforts, including those undertaken by the United States, to protect the people of the region from the repercussions of the conflict.”
The White House did not immediately respond to a request for comment on the decision.
In Washington, Vice President JD Vance said Friday that funds would not be released to Iran for signing a deal with the United States or participating in a meeting, adding that the potential deal is structured to ensure that economic benefits will flow to Tehran if it meets its obligations.
There was no immediate response from Iranian authorities to a Reuters requesting feedback on the move.
None of the sources cited in the Reuters report agreed to be identified due to the sensitivity of the issue.
One of the sources familiar with the deal said the move offered a way to help resolve the U.S.-Iran conflict without either side crossing its red line: Iran can claim it got compensation for war damages, Washington can insist it paid nothing while presenting the move as an investment in rebuilding regional trust.
The source added that Iran had contacted at least two other Gulf Arab countries to strike a similar deal.
On April 11, a senior Iranian source said the United States had agreed to release frozen Iranian assets held in Qatar and other foreign banks, although a U.S. official quickly denied the claim.
The source, who declined to be named due to the sensitivity of the matter, said Reuters that the unfreezing of assets was “directly linked to ensuring safe passage through the Strait of Hormuz”, a key issue in negotiations aimed at ending the conflict.
