UAE reportedly struck a deal to release billions to Iran after months of attacks, but the Gulf state says the allegations are ‘entirely false’

According to Reuters, the United Arab Emirates has officially denied reports that it reached a deal to unlock billions of dollars for Iran in exchange for an end to regional hostilities. Four sources indicated that the Gulf state agreed to release between $10 billion and $20 billion to Tehran. However, the UAE foreign ministry issued a statement, categorizing these claims as entirely false.

The ministry’s statement affirmed that “these allegations are entirely false and unfounded,” stressing that no frozen Iranian funds had been released, transferred, or facilitated through the UAE. The denial came after reports suggested that a first tranche of $3 billion had already been delivered to Iran. The alleged arrangement was reportedly a tactical move intended to stop Iranian missile and drone strikes on the UAE during the ongoing conflict.

Reports had also suggested that the potential deal included a broader framework for intelligence sharing and economic cooperation. According to some sources, the arrangement was designed to allow various parties to save face, with Iran claiming compensation for war damages while the UAE secured its status as a safe business hub. The last direct Iranian attack on the UAE reportedly occurred on May 4, when the port of Fujairah was struck.

The UAE is denying a deal while Iran-linked billions sit frozen in Dubai under U.S. sanctions

A UAE official stated that the country is prioritizing regional stability, saying, “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 added, “The UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict.” The UAE government has maintained that these reports do not reflect reality.

The financial backdrop involves substantial Iranian-linked deposits held in Dubai, many of which are currently frozen due to U.S. sanctions. Separately, the U.S. has also been reported to be planning to use Iranian assets to help Gulf allies repair damage caused by Iranian attacks.

If those funds were to move, it would require navigating a difficult regulatory environment to avoid being cut off from the American financial network. Despite the rumors of a deal, the White House has not provided comment on the specific arrangement.

In Washington, President Donald Trump’s administration has maintained a strict stance on financial dealings with Iran. Vice President JD Vance addressed the issue on Friday, June 7, stating that funds would not be released to Iran simply for signing a deal with the U.S. or attending a meeting.

Vance added that any potential deal is structured so that economic benefits would only flow to Tehran if it meets its obligations. Trump has also separately urged Iran and Israel to stop shooting immediately, stating that a peace deal is proceeding.

The reports regarding the transfer of funds reportedly gained momentum after officials from Iran’s Revolutionary Guards visited Abu Dhabi last week to meet with Sheikh Tahnoun bin Zayed al Nahyan, the UAE’s national security adviser. That visit was reportedly followed by a trip from UAE officials to Tehran to finalize details. The UAE government, however, remains firm in its rejection of these accounts.

As of now, the UAE’s official position is a complete denial of the claims, including the specific figures cited by sources. No frozen Iranian funds have been confirmed as released, transferred, or facilitated through the UAE, according to the ministry’s statement.