In a significant tactical shift, the United Arab Emirates has reportedly agreed to unlock billions of dollars for Iran, a move that appears to be a de-escalation strategy following weeks of Iranian attacks on the UAE during the U.S.-Israeli war with the Islamic Republic. [4, 8, 11, 15] Sources suggest that the UAE may release a total of $10 billion, with over $3 billion already delivered, while other sources indicate the figure could be as high as $20 billion. [4, 6, 8, 15] This potential financial arrangement coincides with the final stages of broader negotiations between Tehran and Washington aimed at ending the war, which diplomats believe could also involve the release of tens of billions of dollars in frozen Iranian oil revenues. [4, 6, 8, 11, 15] The UAE's Ministry of Foreign Affairs, however, has categorically denied these reports, stating that "allegations concerning $3 billion" are "entirely false and unfounded" and that "no frozen Iranian funds have been released, transferred or facilitated through the UAE." [4, 6, 15] An UAE official, when asked for comment, emphasized the country's commitment to easing tensions and fostering peace, stating, "The UAE's foreign policy is guided by promoting de-escalation and reducing tensions across the region, while advancing lasting peace and stability." [4, 8] The UAE had been heavily targeted by Iran during the recent conflict, with the last known direct attack occurring on May 4, a strike on the Fujairah port. [4, 6, 15] In the past month, the UAE has been spared fresh strikes, while Iran has redirected its attacks toward Kuwait and Bahrain. [4, 6] The arrangement signals a notable pivot from the previous animosity between UAE-Iran relations, which had seen Iranian attacks impact Dubai's tourism and business reputation. [6, 15] The potential financial flow could be linked to Iran's efforts to secure compensation for war damages, while allowing Washington to maintain that it has not directly funded Tehran. [6] Dubai's banks have historically held substantial Iranian-linked deposits, many of which are frozen under U.S. sanctions. [4, 15] Previously, in March 2026, the UAE had warned Iran of potential asset freezes in response to escalating regional attacks. [5]