Reuters could not establish whether the funds earmarked for the transfers belong to the UAE or originate in long-blocked Iranian accounts in the UAE banking system, or elsewhere.<\/p>\n
A UAE official, asked to comment on the transfer, told Reuters the country was trying to ease tension and foster peace.<\/p>\n
\u201cThe UAE\u2019s foreign policy is guided by promoting deescalation and reducing tensions across the region, while advancing lasting peace and stability,\u201d the official said. \u201cThe UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict.\u201d<\/p>\n
\t Iran last attacked the UAE directly on May 4<\/p>\n The White House did not immediately respond to a request for comment on the move.<\/p>\n In Washington, Vice President JD Vance said on Friday that funds would not be released to Iran for signing a deal with the US or attending a meeting, adding that the potential deal is structured to ensure that economic benefits would flow to Tehran if it meets its obligations.<\/p>\n There was no immediate response from Iranian authorities to a Reuters request for comment on the move.<\/p>\n None of the sources cited in this article would agree to be identified due to the sensitivity of the matter.<\/p>\n The arrangement signals a striking pivot from the open animosity of UAE-Iran relations through much of the war, when Iranian attacks emptied Dubai\u2019s hotels, drove some expatriates to flee and shook the reputation for safety that is central to the country\u2019s position as a premier business hub.<\/p>\n One of the sources with knowledge of the arrangement said the move offered a way to help solve the conflict between the US and Iran without either side crossing its red line: Iran can claim it extracted compensation for war damages, Washington can insist it paid nothing, and Abu Dhabi obtains its own security and Dubai\u2019s hub status, while framing the move as an investment in rebuilding regional trust.<\/p>\n The other source with knowledge of the arrangement said that in return for the disbursement, Iran would halt missile and drone attacks on the UAE, and there would be a rebuilding of bilateral ties, including intelligence sharing and economic cooperation.<\/p>\n The source added that Iran had approached at least two other Gulf Arab countries to make a similar arrangement.<\/p>\n \t The last known direct attack by Iran on the UAE was more than a month ago \u2014 a May 4 strike on the Gulf state\u2019s Fujairah port on the Gulf of Oman.<\/p>\n The first source with knowledge of the arrangement said talks had started several weeks ago but quickened pace when officials of Iran\u2019s powerful Islamic Revolutionary Guard Corps visited Abu Dhabi last week to meet Sheikh Tahnoun bin Zayed al Nahyan, the UAE\u2019s national security adviser and deputy ruler of Abu Dhabi, and stayed at his guest house.<\/p>\n That trip was followed by a visit by UAE officials to Tehran to negotiate the details of the mechanism.<\/p>\n Sizable Iranian assets in Dubai<\/p>\n The UAE-Iranian arrangement is set to unfold against a complex financial backdrop potentially involving Dubai, the UAE\u2019s main commercial hub and one of Tehran\u2019s most critical economic lifelines.<\/p>\n Dubai\u2019s banks have long held substantial Iranian-linked deposits, much of them now immobilized under US sanctions that police the global dollar-clearing system and expose any foreign bank dealing with blacklisted Iranian entities to being cut off from the American financial network.<\/p>\n \t On April 11, a senior Iranian source said the US had agreed to release Iranian frozen assets held in Qatar and other foreign banks, although a US official swiftly denied the assertion.<\/p>\n The source, who declined to be named due to the sensitivity of the matter, told Reuters that unfreezing the assets was \u201cdirectly linked to ensuring safe passage through the Strait of Hormuz,\u201d a key issue in talks aimed at ending the conflict.<\/p>\n
\t\t\t\t\t\t\t\t\t The war with Iran has been draining for all of us in Israel. But when I heard about a high casualty incident \u2013 ballistic missile impacts in Arad and Dimona that left nearly 200 people wounded \u2013 I drank a cup of coffee, packed a bag, and headed south.<\/p>\n There, I spoke with Shilgit, the head of an after-school program for underprivileged youth. Standing outside her destroyed center, Shilgit said it was a miracle that no children were hurt and spoke about the community coming together in the hours since.<\/p>\n As a Times of Israel reporter, I\u2019m committed to telling stories of resilience like Shilgit\u2019s. But my colleagues and I can’t do this alone. If you value work like this, please consider joining our reader support group, The Times of Israel Community. Your financial support is essential to keep real human reporting like this going.<\/p>\n \u2014 Stav Levaton, military reporter<\/p>\n \t\t\t
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\n\t\tIranian Foreign Minister Abbas Araghchi, left, is welcomed by his Emirati counterpart Sheik Abdullah bin Zayed al-Nahyan, in Abu Dhabi, United Arab Emirates, May 12, 2025. (Iranian Foreign Ministry via AP)<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/06\/AP26091088437105-e1780812156654-640x400.jpg\")
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\n\t\tA man walks away after watching as a black plume of smoke rises from a warehouse in the industrial area of Sharjah City, United Arab Emirates, March 1, 2026, following Iranian strikes. (AP Photo\/Altaf Qadri)<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/03\/AP26071288362337-640x400.jpg\")
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\n\t\tWorkers inspect damage caused by an Iranian drone strike overnight at the Address Creek Harbour hotel in Dubai, United Arab Emirates, March 12, 2026. (AP\/Fatima Shbair)<\/p>\n
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