UAE Agrees to Release Billions to Iran in Major Policy Shift Following Attacks
The UAE has reportedly agreed to release billions to Iran to halt recent attacks that damaged its economy, a major policy shift. Sources cite figures of $10B to $20B, though the UAE's foreign ministry denies the report. The move coincides with broader US-Iran war settlement talks and involves complex questions about Iranian assets frozen in Dubai banks under US sanctions.
UAE-Iran funds release agreement
▪Two other sources with knowledge of the arrangement stated the total funds involved are $20 billion, with a first tranche of $3 billion made available.
▪The United Arab Emirates has reportedly agreed to release billions of dollars in funds to Iran in exchange for a halt to attacks.
▪Two regional sources reported the UAE agreed to release $10 billion to Iran, with over $3 billion already delivered.
▪The UAE's foreign ministry categorically denied reports that it has "released, transferred, or moved" frozen funds to Iran.
▪Talks reportedly accelerated after officials from Iran’s Islamic Revolutionary Guard Corps visited Abu Dhabi to meet with Sheikh Tahnoun bin Zayed al Nahyan.
Iranian attacks on UAE
▪The last known direct Iranian attack on the UAE was a strike on the Gulf state’s Fujairah port on May 4.
▪The agreement was reportedly prompted by weeks of Iranian attacks on the UAE that damaged its economy and reputation as a business hub.
US-Iran war settlement negotiations
▪The broader US-Iran talks could involve releasing tens of billions of dollars in Iranian oil revenues frozen under US sanctions.
▪The UAE-Iran arrangement coincides with the final stages of broader negotiations between Tehran and Washington to end a war.
UAE foreign policy shift rationale
▪One source suggested the deal allows Iran to claim compensation, Washington to insist it paid nothing, and Abu Dhabi to secure its safety.
▪A UAE official said the country's foreign policy aims to promote de-escalation and reduce regional tensions.
Iranian assets in Dubai banks
▪It is not established whether the funds belong to the UAE or originate from long-blocked Iranian accounts in the UAE banking system.
▪Dubai's banks hold substantial Iranian-linked deposits, many of which are immobilized by US sanctions.
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