UAE set to unlock billions of dollars for Iran: What we know so far

The United Arab Emirates has reportedly agreed to unlock billions of dollars for Iran, a major pivot after weeks of Iranian attacks on the wealthy Gulf Arab state during the US-Israeli war with the Islamic Republic.

While this major move coincides with the closing period of broader negotiations between Tehran and Washington on ending the war that diplomats say official payout could involve the release of tens of billions of dollars in frozen Iranian oil revenues.

The UAE statement reads: “Affirmed that these allegations are entirely false and unfounded, stressing that no frozen Iranian funds have been released, transferred or facilitated through the UAE.”

Vice President JD Vance said on Friday that the funds will be withheld to Iran upon signing a deal with the US, that the proposed agreement is arranged to ensure that economic benefits will flow to Tehran if it honors its commitments.

The arrangement marks a radical realignment from the open hostility of UAE-Iran relations through much of the geopolitical tensions, when Iranian attacks prompted expats to evacuate and shattered the safety record that is so pivotal to the country’s position as a major business hub.

According to the sources, Iran would cease drone attacks on the UAE, adding that there would be a process of restoring diplomatic relations sharing and economic cooperation. 

The UAE-Iranian agreement involves Dubai, the Emirates’ prominent commercial hub and a long-standing established financial safety net for Tehran.