UAE Reportedly to Unfreeze Billions in Iranian Oil Revenues Amid Regional Tensions
Sources say UAE agreed to release frozen Iranian funds to halt missile and drone attacks, but UAE Foreign Ministry denies the reports.
According to multiple sources cited by Reuters, the United Arab Emirates (UAE) has agreed to unfreeze billions of dollars in Iranian oil revenues held in banks, aiming to stop direct Iranian missile and drone attacks on its territory. However, the UAE Foreign Ministry has officially denied these reports.
Financial Moves Against a Backdrop of Regional Conflict
On the evening of June 12, four sources informed Reuters that the UAE decided to release tens of billions of dollars in Iranian oil income frozen in foreign banks due to U.S. sanctions. The move is reportedly intended as a de-escalation measure to curb attacks on the UAE from Iranian-backed forces.
"UAE's foreign policy is guided by principles of promoting de-escalation, reducing regional tensions, and fostering durable peace and stability," one source told Reuters.
Estimates of the amount to be unfrozen vary: two sources mentioned around $10 billion, while others suggested twice that sum. The first tranche of over $3 billion (more than €2.5 billion) was reportedly already transferred to Iran. In return, Tehran allegedly committed to halting missile and unmanned aerial vehicle (UAV) strikes on the UAE. The last such attack took place on May 4, targeting the port of Fujairah in the Gulf of Oman.
Following the Reuters report, the UAE Foreign Ministry issued a statement denying any unfreezing or transfer of Iranian funds. Afra Al-Hameli, Director of Strategic Communications at the UAE Foreign Ministry, declared on social media that the claims were "completely false and baseless," emphasizing that no frozen Iranian assets have been released or processed through UAE banks.
Reuters clarified it could not confirm whether the funds belong directly to the UAE government or involve Iranian assets frozen within or outside the UAE banking system.
Broader Diplomatic Developments on Iran
On the same day, Pakistan's Prime Minister Shehbaz Sharif, a key mediator in the negotiations, announced on social media that the U.S. and Iran had agreed on the final text of a peace agreement, stating, "Peace has never been closer than it is now." A U.S. government source told AFP that Washington is approximately 80-85% confident the deal will be signed imminently.
The Iranian Mehr news agency published a draft memorandum between the U.S. and Iran comprising 14 points. These include an immediate and complete cessation of hostilities, withdrawal of U.S. troops from territories bordering Iran, full lifting of the blockade on Iranian ports, and reopening the Strait of Hormuz within 30 days.
Iran's Foreign Minister Abbas Araghchi noted that discussions on Iran's nuclear program and the lifting of U.S. sanctions are planned for the second, final stage of the agreement, following 60 days of negotiations to end the conflict.
