UAE to unlock frozen Iranian funds amid US ceasefire push

The United Arab Emirates has agreed to unlock billions of dollars linked to Iran, according to people familiar with the arrangement, in a move tied to efforts to reduce tensions and support wider ceasefire talks involving Tehran and Washington. The reported step comes after weeks of Iranian attacks on the Gulf state and as negotiations over the broader conflict enter what diplomats describe as a final stage. The funds are said to be connected to long-frozen Iranian oil revenues held in foreign banks under US sanctions.

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Two regional sources said the UAE had agreed to release a total of $10bn, with more than $3bn already delivered. Two other sources with knowledge of the arrangement put the total at $20bn, and said the move was agreed in return for a halt to Iranian attacks on the UAE. One source said a first tranche of $3bn had already been made available.

Reuters was unable to establish whether the money belongs to the UAE or comes from long-blocked Iranian accounts in the UAE banking system or elsewhere. A UAE official said the country was trying to ease tension and foster peace. The official said the UAE's foreign policy is guided by de-escalation and reducing tensions across the region, while advancing lasting peace and stability.

The official also said the UAE supports efforts, including those undertaken by the United States, to protect people in the region from the repercussions of conflict. The White House did not immediately respond to a request for comment, and there was no immediate response from Iranian authorities. The reported move matters because it sits at the intersection of sanctions policy, regional security and the wider effort to end the war.

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Any release of frozen funds could affect the leverage available in talks between Tehran and Washington, while also signalling a possible shift in the UAE's approach after a period of open hostility. It also highlights how financial measures are being used alongside diplomacy as part of a broader attempt to contain the conflict. The arrangement appears to mark a notable change in UAE-Iran relations, which have been strained for much of the recent period.

The report says the move follows Iranian attacks on the UAE and comes as the United States and Iran discuss terms that could end the war. Earlier on Friday, US Vice President JD Vance said frozen funds would not immediately be released to Iran upon signing a deal, adding that any economic benefits would depend on Tehran meeting its obligations. That suggests the financial side of any agreement remains conditional and politically sensitive.

What remains unclear is the exact legal structure of the transfer, the ultimate source of the funds and whether the reported amounts are $10bn or $20bn. It is also not clear how much has already been made available, or whether the arrangement will hold if the ceasefire push falters. The next developments to watch are any formal confirmation from the UAE, any response from Iran and whether the broader US-Iran talks produce a deal that changes the status of frozen assets.

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