UAE Denies Releasing USD 20 Billion to Iran, Calls Reports of Fund Transfer ‘Entirely False’
UAE Ministry of Foreign Affairs has strongly denied reports alleging that the Gulf nation agreed to release up to $20 billion in frozen funds to Iran. In an official statement, the ministry labeled the allegations "entirely false and unfounded," emphasizing that no Iranian funds have been released, transferred, or facilitated through the UAE banking system.
The United Arab Emirates (UAE) Ministry of Foreign Affairs has strongly denied reports alleging that the Gulf nation agreed to release up to $20 billion in frozen funds to Iran. In an official statement, the ministry labeled the allegations "entirely false and unfounded," emphasizing that no Iranian funds have been released, transferred, or facilitated through the UAE banking system. The denial comes in response to a Reuters report citing anonymous regional sources, which claimed Abu Dhabi had agreed to unlock the funds in a tactical pivot to halt direct Iranian missile and drone attacks. According to those sources, a first tranche of $3 billion had already been delivered as part of an effort to restore bilateral ties, share intelligence, and protect Dubai's standing as a secure global business hub.
The reported arrangement unfolds against the backdrop of a broader, high-stakes conflict involving the United States, Israel, and Iran. While anonymous sources suggested the fund transfer was a localized mechanism to de-escalate tensions without violating U.S. sanctions, the UAE official stance firmly rejects any such transaction. A UAE official, speaking broadly on the country's diplomatic position, stated that Abu Dhabi's foreign policy remains strictly focused on promoting de-escalation, reducing regional tensions, and supporting U.S.-led efforts to protect the region from the broader repercussions of conflict. Iran War: What We Know So Far About the Reported US-Iran Peace Deal.
The diplomatic friction highlights the delicate position of Dubai, which serves as a major commercial hub and a historical economic lifeline for Tehran. Millions of dollars in Iranian-linked deposits remain immobilized within the UAE banking system due to stringent U.S. sanctions that monitor the global dollar-clearing network. In Washington, Vice President JD Vance addressed the broader geopolitical landscape on Friday, stating that the U.S. would not release funds to Iran simply for attending meetings or signing preliminary deals. Vance noted that any potential economic benefits to Tehran are strictly structured around Iran meeting its specific international obligations. Ali Khamenei Funeral Procession: Iran Sets July 4 Ceremony Date, Former Supreme Leader to Be Buried in Mashhad on July 9.
Regional intelligence indicates that direct hostilities have cooled slightly, with the last recorded direct attack by Iran on the UAE occurring on May 4, targeting the Fujairah port on the Gulf of Oman. Media outlets have been urged by the UAE Ministry of Foreign Affairs to verify facts with official channels before circulating unverified claims.
(The above story first appeared on LatestLY on Jun 13, 2026 05:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).