UAE agrees to unlock billions in frozen Iranian funds

The United Arab Emirates has agreed to unlock billions of dollars for Iran, according to four sources cited by Reuters. The move, which has not been previously reported, coincides with the final stages of broader negotiations between Tehran and Washington on ending the war. Diplomats suggest these talks could involve the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under US sanctions.

Two regional sources told Reuters the UAE had agreed to release a total of $10 billion, more than $3 billion of which had already been delivered. Two other sources with knowledge of the arrangement put the total funds involved at $20 billion, adding that the move had been agreed in return for a halt to Iranian attacks on the UAE. One of the sources with knowledge of the arrangement also said a first tranche of $3 billion had already been made available.

The development comes amid ongoing diplomatic efforts to de-escalate tensions in the region. The frozen funds are part of Iranian assets held abroad due to US sanctions. The release of such funds could provide economic relief to Iran, which has faced severe financial constraints. The exact terms and conditions of the agreement remain unclear, as do the details of the broader US-Iran negotiations.

According to Mehr News Agency, the report by Reuters highlighted that the UAE's decision is seen as a significant step in the ongoing diplomatic process. The sources spoke on condition of anonymity due to the sensitivity of the matter. The Iranian government has not officially commented on the report.