The United Arab Emirates has agreed to unlock billions of dollars for Iran in a strategic shift following weeks of Iranian attacks on the UAE during the US-Israeli war with Iran, Reuters reported on June 12, 2026 [1, 2, 3]. Two regional sources told Reuters the UAE agreed to release a total of $10 billion, with more than $3 billion reportedly delivered already [1, 2, 3]. However, two other sources indicated the figure could be as high as $20 billion in return for halting Iranian assaults on UAE soil [1, 2, 3].
It remains unclear whether these funds come from UAE-owned assets or frozen Iranian accounts held within UAE banks [1, 2]. The UAE foreign ministry officially denied transferring any frozen Iranian funds, calling such reports "false and unfounded" [3]. This marks a sharp contrast to reports claiming a tranche of $3 billion has been released as part of the agreement.
An UAE official said the country is working to reduce tension and promote peace across the region, stating, "The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region, while advancing lasting peace and stability." The official also affirmed the UAE's support for US-led efforts to protect regional populations from conflict repercussions [1].
US Vice President JD Vance stressed the deal’s conditional nature, saying "Funds would not be released to Iran for signing a deal with the US or attending a meeting," and that any economic benefits will be tied to Iran meeting its obligations under the agreement [2].
Iran last directly attacked the UAE on May 4, 2026, during the ongoing conflict [1, 3]. There has been no public response yet from Iranian authorities regarding the reported funds release [1, 2].
The UAE foreign ministry is expected to issue an official statement on June 13 addressing the conflicting reports about the funds transfer [3].
