The United Arab Emirates has agreed to unlock billions of dollars for Iran under a developing arrangement linked to broader regional de-escalation efforts.

Axar.az reports, citing Reuters, two sources said at least $10 billion would be released, with one tranche of roughly $3 billion already transferred, while others estimated the total value of the arrangement could reach $20 billion.

The funds are tied to efforts to reduce tensions following recent conflict dynamics involving Iran and Gulf states.

One source said the move is connected to a wider understanding in which Iran would reduce or halt attacks on UAE-linked interests, while also opening the door to renewed economic and security cooperation.

A UAE official, however, denied the existence of any transfer, saying, “No frozen Iranian funds have been released, transferred or facilitated through the UAE,” and described the reports as “entirely false and unfounded.”

Separately, the official said the UAE’s policy remains focused on de-escalation.

“The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region, while advancing lasting peace and stability.”

The arrangement comes amid ongoing diplomatic discussions involving Iran, the United States, and regional actors on broader conflict resolution and potential financial mechanisms tied to sanctions relief and frozen assets.