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According to sources, the UAE will provide billions of cash for Iran.

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In a tactical change following weeks of Iranian attacks on the affluent Gulf Arab state during the US-Israeli conflict with the Islamic Republic, the United Arab Emirates has agreed to unlock billions of cash for Iran, according to four sources.

The final stages of larger negotiations between Tehran and Washington on ending the war, which diplomats say may involve the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under US sanctions, coincide with news of the UAE’s move to seek de-escalation, which has not been previously reported.

Iran has trained its missiles and drones on Kuwait and Bahrain, but the UAE, which was frequently targeted by Iran during the height of the conflict, has not seen any new attacks in the last month. More than a month has passed since Iran’s most recent documented direct attack on the United Arab Emirates, which targeted the Gulf state’s Fujairah port on the Gulf of Oman on May 4.

Over $3 billion of the $10 billion that the UAE had pledged to release has already been released, according to two regional sources who spoke with Reuters.

The total amount of money involved, according to two other persons with knowledge of the deal, was $20 billion. They also stated that the action was agreed upon in exchange for an end to Iranian strikes on the United Arab Emirates.

A first tranche of $3 billion has already been made available, according to one of the sources with knowledge of the agreement.

Reuters was unable to determine if the money designated for the transfers came from Iranian accounts that had been barred for a long time in the UAE banking system or from another source.

Reports of the transfer, “including allegations concerning $3 billion,” were firmly denied by the UAE foreign ministry in a statement released early on Saturday.

No blocked Iranian monies have been freed, moved, or facilitated through the UAE, according to the UAE statement, which “affirmed that these allegations are entirely false and unfounded.”

No other details were included in the UAE statement.

A UAE official previously stated that the nation was attempting to reduce tension and promote peace when Reuters contacted them to comment on the transfer.According to the source, “the UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region while advancing lasting peace and stability.” “The UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict.”

against May 4, Iran launched its most recent direct attack against the UAE.

A request for comment on the action was not immediately answered by the White House.

Vice President JD Vance stated in Washington on Friday that Iran will not receive money for attending a meeting or striking a contract with the United States. He added that the proposed agreement is set up to guarantee that Tehran would receive financial rewards if it fulfils its commitments.

Reuters asked Iranian authorities for comment on the action, but they did not immediately respond.

Because of the delicate nature of the subject, none of the sources included in this piece would consent to be identified.

The agreement marks a dramatic change from the open hostility that characterised UAE-Iran ties during the majority of the war, when Iranian attacks destroyed Dubai’s hotels, forced some foreigners to leave, and damaged the reputation for safety that is essential to the nation’s standing as a top business hub.

According to one of the people with knowledge of the arrangement, the move offered a way to help resolve the conflict between the US and Iran without either side going over its red line: Abu Dhabi gets its own security and Dubai’s hub status, Washington can insist it paid nothing, and Iran can claim it extracted compensation for war damages, all while framing the move as an investment in restoring regional trust.

According to the other source with knowledge of the agreement, Iran will stop attacking the United Arab Emirates with missiles and drones in exchange for the payment, and bilateral relations would be restored, including economic cooperation and intelligence sharing.

According to the source, Iran had made similar arrangements with at least two other Gulf Arab nations.

According to the first person with knowledge of the arrangement, negotiations had begun a few weeks ago but accelerated when representatives of Iran’s formidable Revolutionary Guards travelled to Abu Dhabi last week to meet Sheikh Tahnoun bin Zayed al Nahyan, the deputy ruler of Abu Dhabi and national security adviser of the United Arab Emirates, and stayed at his guest house.

UAE officials then travelled to Tehran to negotiate the mechanism’s specifics.

DUBAI’S SIZEABLE IRANIAN ASSETS

The UAE-Iranian agreement is expected to take place in a complicated financial environment that may involve Dubai, the primary commercial center of the UAE and one of Tehran’s most vital economic lifelines.

Due to US sanctions that monitor the worldwide dollar-clearing system and put foreign banks that deal with Iranian firms on the blacklist at risk of being shut off from the US financial network, Dubai’s banks have long held significant Iranian-linked deposits, many of which are now immobilised.

A US official quickly refuted a senior Iranian source’s claim on April 11 that the US had agreed to release Iranian blocked assets held in Qatar and other international institutions.

Unfreezing the assets was “directly linked to ensuring safe passage through the Strait of Hormuz,” a crucial issue in negotiations aimed at resolving the crisis, according to the source, who chose not to be named owing to the delicate nature of the situation.

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IHC forms larger bench to hear plea against PTI’s Sept 27 protest

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The Islamabad High Court (IHC) has issued a written decision on a petition challenging Pakistan Tehreek-e-Insaf’s (PTI) scheduled September 27 protest and long march, while creating a three-member bigger bench to consider the matter.

The larger bench will comprise IHC Chief Justice Sarfraz Dogar, Justice Azam Khan and Justice Muhammad Asif. The bench is slated to hear the case on September 10.

Chief Justice Sarfraz Dogar issued a three-page written order from the last session and directed the chief secretaries and inspectors general of police of all four provinces to come before the court in person on Thursday.

PTI finalises backup protest plan if Minar-e-Pakistan demonstration is denied permission

The court also summoned the Islamabad chief commissioner, Islamabad IG and deputy commissioner in their personal capacity. The advocate generals of all four provinces and Islamabad have also been asked to assist the court in the proceedings.

The petition was submitted by a businessman who contended that PTI’s intended demonstration could disrupt citizens and economic activity in Islamabad. His counsel informed the court that legislation governing protests in the capital already exists and highlighted concerns about the likely use of government resources during the planned mobilisation.

During the previous session, the petitioner’s lawyer also referred to PTI’s 2024 protest and brought relevant remarks and newspaper reports before the court. He suggested that protests should not be utilized to exert pressure on governmental institutions and judges.

The court remarked that the subject was of substantial importance and, in view of its sensitivity, issued a notice to the Attorney General for Pakistan for help in the case. The court then determined that the dispute should be heard by a larger bench.

The plea came after PTI organized a September 27 rally and long march towards Islamabad. The party has said the mobilisation is focused at getting access to party founder Imran Khan for his family and personal doctors, as well as raising concerns regarding his legal and prison-related affairs.

The IHC has fixed the subject for further hearing on September 10, when the summoned officials are likely to appear before the three-member bigger bench.

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Iran says it caught US underwater drone in Strait of Hormuz

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Iran’s Revolutionary Guards said on Tuesday it has captured a U.S. uncrewed submarine at the entrance to the Strait of Hormuz, offering a rare insight at how underwater drones are being ​used in military operations.

Iranian state media reported the craft was a Dive-LD, a ​large autonomous underwater vehicle made by California defense firm Anduril. The 19-foot (5.8-metre) ⁠submersible can carry out duties like mine countermeasures, seabed mapping, intelligence collection and the ​inspection of undersea infrastructure such as cables and pipelines, the business has said. “We detained one ​of the most advanced, clever and unmanned submarines of the terrorist American army near the entrance to the Strait of Hormuz. This submersible is equipped with the latest technologies,” the Revolutionary Guards Navy said ​in a statement broadcast by Iranian state media.

In response, a Pentagon spokesperson revealed a ​underwater drone had “malfunctioned more than a day ago.” “It was surveying regional seas in support of ongoing operations. ‌The ⁠defective drone was an earlier model that neither collected sensitive data nor carried any classified sonar or radar technology,” the spokesperson stated.

Anduril confirmed the loss of one of its vessels, but minimized the seriousness of the incident. “Dive-LD is an attritable autonomous system, meaning it ​is built from the ​outset to operate ⁠in perilous conditions where loss of the vehicle is a predicted possibility,” a company representative stated.

The U.S. Navy is spending extensively in ​unmanned naval systems, including undersea and surface vehicles, as it seeks ​cheaper ways ⁠to monitor broad expanses of ocean, gather intelligence and track hostile ships and submarines without putting troops at danger.

According to Anduril’s website, Dive-LD can operate for up to 10 days ⁠without returning ​to base and is meant to dive to depths ​of as much as 6,000 metres (19,700 ft). Dive-LD units cost roughly $2.5 million each, U.S. military news site DefenseScoop ​reported in 2024.

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Dollar wobbles, oil’s dash to $100 chills sentiment, Yen stands big

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The Japanese yen was pinned near its best level since February on Wednesday, leaving the dollar on the ‌defensive as traders grappled with oil prices heading toward $100 a barrel amid an expanding war in the Middle East.

Iranian-backed Houthis in Yemen attacked several Saudi cities, drawing a U.S. partner further into a battle that has dragged on for more than six months, as U.S. forces struck multiple Iranian oil tankers and Iran threatened a U.S. station in Jordan.

Brent crude futures rose by more than 1.48% to $99.37 a barrel, weighing on global markets ahead of a U.S. inflation data on Friday that will set the stage for central bank meetings next week in the U.S. and Japan.

The currency market nudged the dollar down a touch in response, though some analysts said that was due to the yen’s swift rally over the past week.

The euro held constant at $1.1631 while the pound was last bought at $1.3546. ​The dollar index, measuring the U.S. currency against a basket of six major rivals, was at 98.15, near its lowest level in nearly two weeks.

OCBC strategists said the current increase keeps Fed policy implications from higher energy prices in focus, especially after last week’s robust U.S. payrolls report reignited expectations of another rate hike. “Higher oil and rates should help limit USD fall for now but we anticipate a more dramatic move will await confirmation from the impending inflation data,” they said in a note.

The yen has been under focus after its 4% surge in September that has altered the math for the popular carry trade in which investors borrow in yen at a low cost and invest in other currencies and assets yielding better interest.

The yen was stronger at 153.65 per dollar, close to the seven-month peak of 152.89 struck on Tuesday. The surge has been broad-based with the Japanese currency strengthening against the euro and sterling as well as favorite carry-trade targets such as the Mexican peso and Turkish lira.

The increase has been fueled by expectations of quicker tightening by the Bank of Japan and the return of offshore cash by Japanese investors and pressure from Washington for a higher yen.

Traders broadly expect the BOJ to hike rates by 25 basis points at its September 17-18 meeting but the rise will rest on if Governor Kazuo Ueda delivers hawkish comments and the wild card will be the Federal Reserve.Aninda Mitra, head of Asia macro and investment strategy at BNY Investments, stated “Much will depend on how the market prices in the Fed’s path of interest rates too.We estimate the Yen’s “fair value” to be in the 140’s and a further move to that area should not be a total surprise following what has clearly been an overshoot to the side of excessive Yen weakness.”

The Australian dollar gained 0.12% to $0.7225, just below a four-month high set in the previous session, in Pacific trade. The New Zealand dollar was up 0.16% at $0.5862.

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