UAE and Iran Reach Deal on Funds to Halt Attacks

Two regional sources told Reuters the total was set at $10 billion, with more than $3 billion already delivered. Two other sources placed the figure at $20 billion and confirmed a first tranche of $3 billion had been made available. The agreement followed direct Iranian strikes on UAE territory, the most recent on May 4 at Fujairah port.

Talks began several weeks ago and accelerated after officials from Iran's Revolutionary Guards visited Abu Dhabi last week. Those officials met with the UAE's national security adviser and deputy ruler of Abu Dhabi and stayed at his guest house. UAE officials then traveled to Tehran to negotiate the details.

In return for the funds, Iran would halt missile and drone attacks on the UAE and rebuild bilateral ties that include intelligence sharing and economic cooperation, one source with knowledge of the arrangement said. The same source said Iran had approached at least two other Gulf Arab countries to make similar arrangements.

Background to the Arrangement A UAE official stated the country's foreign policy is guided by promoting de-escalation and reducing tensions across the region while advancing lasting peace and stability. The official added that the UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict.

One source said the potential deal is structured to ensure that economic benefits would flow to Tehran if it meets its obligations. Reuters could not establish whether the funds belong to the UAE or originate in long-blocked Iranian accounts in the UAE banking system.

A U.S. official swiftly denied an assertion that the United States had agreed to release Iranian frozen assets held in Qatar and other foreign banks.