UAE paid Iran billions of dollars to halt strikes: Report

What Happened

The United Arab Emirates paid Iran billions of dollars in exchange for halting strikes on Emirati territory, according to an exclusive Reuters report. Two regional sources said the UAE had already transferred $3bn, with the total agreement ranging from $10bn to $20bn. The payment comes after the UAE, previously a hawkish opponent of Iran, joined US and Israeli strikes during the recent war and lobbied against mediation. In a dramatic reversal, the UAE hosted sanctioned Islamic Revolutionary Guard Corps officials at the guest house of Sheikh Tahnoun bin Zayed al-Nahyan, national security adviser and deputy ruler of Abu Dhabi, and sent diplomats to Tehran for de-escalation talks. The funds may originate from frozen Iranian assets in the UAE or Emirati sovereign wealth, according to the report.

Key Actors

Why It Matters

This payment, if confirmed, marks a significant reversal of the UAE's hawkish posture and underscores Iran's perceived victory in the recent hostilities. It reinforces economic interdependence between the two states, with Iran as the UAE's top trading partner, and may allow the US to distance itself from direct payoffs while de-escalation proceeds. The deal risks undermining US sanctions on Iran and could embolden other Gulf states to seek similar arrangements, reshaping regional security dynamics just as Washington and Tehran negotiate a 60-day framework over the Strait of Hormuz and Iran's nuclear programme.

Watch For

Official confirmation or denial from the UAE or Iran regarding the payment figures and details. Impact on the US-Iran 60-day memorandum of understanding and any pushback from Congress or Israel. Reactions from Saudi Arabia, Qatar, and other Gulf Cooperation Council states. Potential shifts in Iranian strike patterns if the agreement falters or is perceived as insufficient. Financial disclosures on the source of the funds.