The United Arab Emirates has reportedly agreed to release billions of dollars to Iran as part of a broader effort to de-escalate regional tensions following weeks of Iranian attacks on the Gulf state. The move, confirmed by multiple sources familiar with the arrangement but denied by UAE officials, comes amid ongoing negotiations between Tehran and Washington aimed at ending the US-Zionist entity war involving the Islamic Republic.

According to four sources, the UAE’s decision marks a tactical shift after Iran targeted the country heavily during the conflict, particularly at the height of hostilities in May. The last known Iranian strike on the UAE occurred on May 4 against Fujairah port on the Gulf of Oman. Since then, Iran’s missile and drone operations have reportedly redirected toward Kuwait and Bahrain, with the UAE avoiding fresh attacks in recent weeks.

Two regional sources told Reuters that the UAE had committed to unlocking $10 billion for Iran, with over $3 billion already transferred. Additional insiders familiar with the deal suggested the total amount could be as much as $20 billion, conditioned on Tehran ceasing further attacks on the UAE. One source confirmed the initial $3 billion tranche had been made available. It remains unclear whether the funds come from UAE reserves or represent previously frozen Iranian assets held within the UAE banking system or other jurisdictions under US sanctions.

The UAE foreign ministry issued a statement early Saturday categorically denying these reports, labeling the allegations “entirely false and unfounded” and insisting no frozen Iranian funds have been released or transferred through the UAE. The statement did not elaborate further on the issue.

Separately, a UAE official, when questioned about the matter, emphasized the country’s commitment to reducing regional tensions and promoting long-term peace and stability. The official underscored the UAE’s support for efforts, including those led by the United States, to mitigate the repercussions of conflict on the peoples of the region.

The White House has not provided an immediate response to inquiries regarding the alleged financial transfers. However, in Washington, Vice President JD Vance stated on Friday that any forthcoming deal would not involve unconditional fund releases for Iran, highlighting that economic benefits would only flow if Tehran fulfills its obligations.

Iranian authorities did not respond to requests for comment on the reported arrangement. Given the sensitive nature of the negotiations, none of the sources were willing to be publicly identified.

The potential financial release by the UAE reflects a notable shift in relations, which had been marked by overt hostility during much of the conflict. Iranian attacks led to an exodus of expatriates from Dubai and undermined the country’s reputation as a stable business hub. The reported agreement may signal a renewed focus on diplomacy as both sides seek to avoid further escalation in a volatile region.