Report: UAE agrees to release billions of dollars to Iran in bid to halt attacks

The United Arab Emirates has agreed to release billions of dollars to Iran, Reuters reported, citing four sources, in what appears to be a tactical shift following weeks of Iranian attacks on the Gulf state during the U.S.-Israeli war with Tehran.

The move comes as Washington and Tehran enter the final stages of talks aimed at ending the war. Diplomats have said the wider negotiations could include the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under U.S. sanctions.

Two regional sources told Reuters that Abu Dhabi had approved the release of $10 billion, with more than $3 billion already transferred. Two other sources familiar with the arrangement put the total at $20 billion, saying the funds were agreed in exchange for Iran halting its attacks on the UAE. One of them also said an initial $3 billion tranche had already been made available.

Reuters said it could not determine whether the money set aside for transfer belonged to the UAE, came from long-frozen Iranian accounts in the Emirati banking system, or originated elsewhere.

Asked about the transfer, a UAE official said Abu Dhabi was working to reduce tensions and support efforts to end the conflict.

"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 said. "The UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict."