UAE Reportedly to Unfreeze Billions in Iranian Oil Revenues Amid Regional Tensions

According to multiple sources cited by Reuters on June 12, the United Arab Emirates (UAE) has consented to unfreeze significant sums of Iranian oil revenues held in foreign banks, potentially worth tens of billions of dollars. These funds have been frozen due to American sanctions on Iran. The move is reportedly aimed at curbing direct Iranian missile and drone attacks against the UAE.

Four separate sources told Reuters that the UAE’s decision to unblock these assets was a strategic effort to promote de-escalation and regional stability. One source emphasized, "The UAE's foreign policy is guided by principles of facilitating de-escalation, reducing regional tensions, and advancing durable peace and stability."

Financial Terms and Strategic Implications

There is some variance in the estimated amount of funds to be released. Two sources mentioned a figure of $10 billion, while others suggested an amount twice as large. It is further reported that the first tranche, exceeding $3 billion (approximately 2.5 billion euros), has already been transferred to Iran.

In exchange for the unfreezing of these assets, Iran allegedly agreed to halt its missile and unmanned aerial vehicle (UAV) attacks on the UAE. The latest such attack was recorded on May 4, when the port of Fujairah in the Gulf of Oman was struck, a key incident that heightened tensions in the region.

"The UAE’s foreign policy is guided by principles of facilitating de-escalation, reducing regional tensions, and advancing durable peace and stability," a source stated.

However, following the Reuters report, the UAE Ministry of Foreign Affairs issued an official denial stating that the claims are "completely false and unfounded." The ministry confirmed that no frozen Iranian assets have been unfrozen, transferred, or processed through UAE banking channels. Afra Al-Hameli, Director of Strategic Communications at the UAE Foreign Ministry, reiterated these points on social media late on June 13.

Reuters itself clarified that it was unable to confirm whether the questioned funds belong directly to the UAE or are long-frozen Iranian assets held within the UAE’s banking system or overseas. This ambiguity adds complexity to the financial and diplomatic narrative.

Context of Broader Diplomatic Developments

The revelation comes amid reports of significant diplomatic progress between the United States and Iran. Pakistani Prime Minister Shehbaz Sharif, acting as the main mediator in the talks, announced on the same day that a final text of a peace agreement had been agreed upon, describing the moment as unprecedentedly close to peace.

According to a source within the US government, the administration is 80 to 85 percent confident that a peace deal will be signed imminently.

On the same day, Iranian news agency Mehr published a 14-point memorandum draft outlining the terms of the US-Iran agreement, which includes an immediate and full cessation of hostilities, withdrawal of US troops from territories bordering Iran, the complete lifting of port blockades, and reopening of the Strait of Hormuz within 30 days.

Iranian Foreign Minister Abbas Araghchi further clarified that discussions on Iran's nuclear program and the lifting of US sanctions are planned for a second, final stage after a 60-day negotiation period focused on ending the conflict.

These developments highlight the intertwined nature of financial flows, sanctions, and geopolitical negotiations, with the potential unfreezing of Iranian billions in the UAE playing a key role in stabilizing tense regional relations and advancing broader peace prospects.