The United Arab Emirates released billions of dollars in frozen Iranian assets as an olive branch to ward off further attacks, according to a report.
Four sources told Reuters that the UAE agreed to release $10 to $20 billion in frozen Iranian assets, $3 billion of which has been released, in exchange for Iran halting attacks against the Gulf country. After the article was published, the UAE’s Foreign Ministry came out with a strong denial, calling the report “entirely false and unfounded.”
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When asked by Reuters, a UAE official did not deny that the transfer had taken place, saying it was committed to peace efforts.
“The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region, while advancing lasting peace and stability,” they said. “The UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict.”
Circumstantial evidence suggested a shift occurred in early May — the UAE was the most attacked nation by Iran during the entire war, being targeted with more missiles and drones than any other, including Israel. After a final attack on May 4, Iran’s assaults abruptly stopped. Since then, Iran has focused its wrath on Kuwait and Bahrain, completely avoiding the UAE.
One source told Reuters that Iran had approached two other Gulf countries with the same arrangement.
Iran and the UAE had a tense relationship before the war, with Abu Dhabi long viewing Tehran as its primary security threat. However, the UAE’s strategy of doing business with nearly everyone included Iran, and the two enjoyed some bilateral cooperation.
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That relationship was all but completely severed with the beginning of Operation Epic Fury, when Iran focused its retaliatory attacks on the small Gulf nation. The UAE reacted with fury, cutting off all relations and emerging as the most hawkish voice in the Gulf, urging President Donald Trump to pursue maximalist aims against Tehran.
Reports after the April ceasefire revealed that the UAE secretly launched airstrikes against Iranian targets during the war. It also significantly boosted its ties with Israel, including a covert visit to the country from Israeli Prime Minister Benjamin Netanyahu and the director of Mossad. Israel secretly deployed an Iron Dome battery to the country to help fend off Iranian drones.
