The UAE has reportedly agreed to release up to $20 billion to Iran, with the first tranche of over $3 billion already received.

On June 13, Reuters, citing multiple sources, reported that the United Arab Emirates (UAE) has agreed to release between $100 billion and $200 billion to Iran. The first installment, reportedly more than $30 billion, has already been transferred, the sources added. This arrangement is advancing alongside U.S.-Iran negotiations aimed at resolving their ongoing conflict. As part of the deal, Iran has pledged to halt missile and drone attacks targeting the UAE, boost intelligence sharing, and expand economic cooperation between the two nations. The exact origin of the funds remains unclear, and it is not yet confirmed whether the money comes from the UAE’s own resources or from Iranian assets that have long been frozen in UAE banks or other locations. UAE officials responded to the reports by stating their country is committed to easing regional tensions and supporting all parties—including the U.S.—in advancing lasting peace and stability in the Middle East. Informants told Reuters that senior Iranian Revolutionary Guard Corps officials traveled to Abu Dhabi last week to hold talks with UAE National Security Advisor Sheikh Tahnoun bin Zayed. Following those meetings, UAE officials traveled to Tehran to finalize the specific mechanisms of the agreement. Iran has also put forward comparable proposals to at least two other Gulf countries, the sources noted. Analysts view the arrangement as a potential compromise for both the U.S. and Iran. For Iran, it could serve as compensation for war-related damages without requiring direct financial support from the U.S. For the UAE, the deal would help secure its own national security and preserve Dubai’s standing as a leading international business hub. Reuters also pointed out that Dubai’s banking system has long held a large volume of Iranian-linked deposits and assets, most of which are frozen under U.S. sanctions. Earlier, Iranian sources claimed the U.S. had agreed to unfreeze some Iranian assets held in Qatari and other countries’ banks, but U.S. officials later rejected these claims.