Gulf Diplomacy Shift: UAE Plans Billions in Support for Iran, Sources Say

The United Arab Emirates has agreed to unlock billions of dollars for Iran under a new arrangement linked to easing regional tensions, according to multiple sources. The deal is said to involve at least $10 billion, with some estimates reaching up to $20 billion, though UAE officials have denied that any frozen Iranian funds were released or transferred.

First payments and regional security link

Sources said more than $3 billion may have already been made available as part of the arrangement. The move reportedly comes after weeks of Iranian attacks during the wider U.S.-Israel conflict, with the UAE seeking to reduce further escalation in the Gulf region.

One source said the agreement is connected to a broader understanding where Iran would halt missile and drone attacks on UAE territory in exchange for financial access and restored economic ties.

US Iran negotiations and Gulf diplomacy

The financial move is happening alongside ongoing U.S.-Iran negotiations aimed at ending the conflict and potentially unfreezing tens of billions of dollars in Iranian oil revenues held in foreign banks under sanctions.

A UAE official said the country’s policy focuses on de-escalation and regional stability, while also supporting international efforts to reduce conflict impacts across the Gulf.

Iran UAE relations and regional impact

The arrangement reflects a shift in UAE-Iran relations after years of hostility during the conflict period. The deal also signals possible intelligence sharing, economic cooperation, and renewed diplomatic contact between the two sides as broader peace talks continue.