The United Arab Emirates on Saturday denied reports that it had agreed to unfreeze billions of dollars in Iranian funds, calling the claims inaccurate.
"The Ministry of Foreign Affairs affirmed that these allegations are entirely false and unfounded, stressing that no frozen Iranian funds have been released, transferred, or facilitated through the UAE," the government said in a statement provided to CNBC.
The denial followed a Reuters report citing four unnamed sources who claimed the UAE had agreed to make the funds available as part of a strategic adjustment after hundreds of attacks targeting Emirati military facilities and infrastructure since the U.S.-led conflict began Feb. 28.
According to Reuters, Iran has not launched projectiles at the UAE during the past week, while neighboring Kuwait and Bahrain have come under attack.
Two sources cited by Reuters said the UAE had agreed to release about $10 billion, including more than $3 billion that had already been transferred. Two additional sources familiar with the matter told the news agency the total amount involved could reach $20 billion and said the arrangement was tied to a halt in Iranian strikes against the UAE.
One source also told Reuters that an initial installment of $3 billion had already been made available.
Reuters said it could not determine whether the money involved belonged to the UAE, came from Iranian assets frozen within the Emirati banking system, or originated from other blocked accounts.
The UAE, particularly Dubai, has long served as a key financial hub for Iranian businesses seeking ways around Western sanctions. According to the Atlantic Council, Iranian entities have used the emirate to facilitate oil sales and move revenue linked to military activities and regional proxy groups.
The think tank said shell companies operating in Dubai's free-trade zones have helped obscure the origins of Iranian oil and other commodities, while informal money-transfer networks have enabled cross-border transactions outside traditional banking channels.
U.S. officials have repeatedly urged the UAE to crack down on those financial networks. In recent years, the Treasury Department has imposed sanctions on several UAE-based entities, arguing enforcement efforts have not fully matched the country's public commitments.