The United Arab Emirates (UAE) has firmly rejected a Reuters report alleging that it secretly agreed to unlock billions of dollars for Iran to halt incoming missile and drone attacks. The UAE Ministry of Foreign Affairs issued a blunt statement calling the claims “entirely false and unfounded,” emphasizing that no frozen Iranian funds have been released, transferred, or facilitated through the UAE banking network.
The denial follows exclusive reporting by Reuters, which cited multiple anonymous regional sources claiming a massive tactical shift by Abu Dhabi to secure its own borders amidst the ongoing U.S.-Israeli war with Iran.
The Alleged Secret Deal: What Sources Claimed
According to the report, the UAE allegedly negotiated a mechanism to release between $10 billion and $20 billion to Tehran. The deal was reportedly structured to achieve the following:
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The Security Payoff: In exchange for the financial disbursement, Iran allegedly agreed to completely halt its missile and drone strikes against the UAE.
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Funds Already Delivered: Sources claimed that an initial tranche of $3 billion had already been made available or delivered to Iran.
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The Catalyst: Negotiations reportedly accelerated after a delegation 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.
The Strategic “Face-Saving” Loophole
One source noted that the unconfirmed deal was designed as a multi-party compromise to avoid crossing political red lines:
The Severe Cost of War on the UAE
The backdrop to these alleged talks is the immense economic pressure the UAE has faced. Prior to a temporary lull in direct hostilities—with the last recorded attack being a May 4 strike on the Fujairah port—Iranian strikes heavily disrupted the UAE economy. The attacks temporarily emptied Dubai’s luxury hotels, triggered an exodus of expatriate workers, and deeply threatened the safety reputation central to the country’s status as a global commercial hub.
Conflicting Stances: UAE vs. U.S. and Reuters Sources
While regional intelligence sources insist a financial arrangement is unfolding to guarantee safe passage through critical shipping lanes like the Strait of Hormuz, official statements tell a completely different story.
“These allegations are entirely false and unfounded… no frozen Iranian funds have been released, transferred, or facilitated through the UAE.” — Ministry of Foreign Affairs, UAE
Meanwhile, in Washington, the White House has remained silent, but Vice President JD Vance signaled a strict stance on any potential broader negotiations with Tehran. Vance stated on Friday that funds would not be handed over to Iran simply for signing a peace deal or attending meetings, asserting that any economic benefits would strictly flow to Tehran after it demonstrates full compliance with its obligations.
