The United Arab Emirates has agreed to release billions of dollars in funds to Iran, according to four sources familiar with the matter.

The wealthy Gulf nation’s tactical shift comes after weeks of sporadic Iranian strikes on the UAE amid a broader conflict involving the Islamic Republic, the United States, and Israel.

The UAE’s move, which has not been previously reported, comes at a critical juncture as negotiations between Tehran and Washington to end the war near their final stages.

Diplomatic sources suggest that these ongoing talks could also trigger the release of tens of billions of dollars in Iranian oil revenues currently frozen in foreign banks under US sanctions.

Two regional sources told Reuters that the UAE has agreed to release a total of $10 billion to Iran, with more than $3 billion already transferred.

Two other sources briefed on the matter stated that the total volume of funds released by the UAE could eventually reach $20 billion.

They added that the UAE is unlocking the capital on the strict condition that Iran ceases further attacks. A source familiar with the agreement confirmed that the initial tranche of $3 billion has already been delivered.

Reuters, however, could not independently verify whether these funds are the UAE’s own capital or Iranian assets previously frozen in Emirati banks or elsewhere.

When asked about the financial transfers, a UAE official stated that the country is working to de-escalate tensions and restore peace.

"De-escalating regional tensions and sustaining long-term peace and stability is a core objective of UAE foreign policy," the official said, adding that Abu Dhabi supports all efforts—including US initiatives—to shield the region's people from the impacts of conflict.

Last Iranian Attack on UAE Was May 4
The White House did not immediately respond to a request for comment regarding the UAE's actions.

In Washington, US Vice President JD Vance said on Friday that Iran would not receive sanctions relief simply for signing an agreement or attending meetings with the United States.

He emphasized that any potential deal is being structured so that Iran receives economic benefits only after fulfilling its commitments.

Iranian authorities also did not immediately respond to a Reuters request for comment on the UAE's move.

All sources cited in this report spoke on the condition of anonymity due to the extreme sensitivity of the matter.

The agreement marks a dramatic turnaround from the overt hostility that characterized UAE-Iran relations through most of the war.

During the conflict, Iranian strikes emptied Dubai’s hotels, drove expatriates to flee the country, and severely tarnished the UAE's reputation as a premier secure business hub.

A source briefed on the matter noted that this arrangement provides a way for both the US and Iran to resolve the conflict without crossing their respective "red lines."

Iran can claim it has exacted reparations for war damages, while Washington can maintain it did not pay any money.

Concurrently, Abu Dhabi secures its safety, preserves Dubai’s status as a commercial hub, and can frame the move as an investment to restore regional confidence.

Another source familiar with the talks said that in exchange for the financial releases, Iran will halt missile and drone strikes against the UAE.

Furthermore, bilateral relations will be rebuilt, including intelligence sharing and economic cooperation.

The source added that Iran has approached at least two other Gulf Arab nations seeking similar arrangements.

The last direct Iranian attack on the UAE was reported more than a month ago, targeting the UAE port of Fujairah on the Gulf of Oman on May 4.

Discussions began several weeks ago but gained significant momentum last week when senior officials from Iran’s powerful Islamic Revolutionary Guard Corps (IRGC) visited Abu Dhabi, according to the first source.

During the visit, they met with Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's National Security Advisor and Deputy Ruler of Abu Dhabi, staying at his guest house.

Following that visit, UAE officials traveled to Tehran to finalize the logistics of the financial arrangement.

Iranian Assets Frozen in Dubai
The UAE-Iran deal unfolds against a complex economic backdrop that heavily involves Dubai, the UAE’s commercial capital and a traditional economic lifeline for Iran.

Dubai banks have long held massive amounts of Iranian capital, much of it frozen due to US sanctions.

Because Washington monitors global dollar transactions, foreign banks face being cut off from the US financial network if they conduct business with blacklisted Iranian entities.

Earlier, on April 11, a senior Iranian source claimed that the US had agreed to unfreeze Iranian assets held in Qatar and other foreign banks. However, a US official promptly denied that claim at the time.

The source, speaking to Reuters on the condition of anonymity due to the sensitivity of the issue, noted that the release of these assets is directly tied to "ensuring safe passage through the Strait of Hormuz"—a pivotal issue in the ongoing conflict resolution talks.