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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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Lula, Brazil’s iconic working class president, wins fourth term in dramatic comeback

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Brazil’s electoral court ruled Sunday that President Luiz Inacio Lula da Silva won a record fourth term in a surprising result that defied polls, precedent and worldwide anti-incumbent sentiment to put the brakes on a wave of right-wing election victories across Latin America.

Lula, an icon of the worldwide left and the most powerful force in Brazilian politics this century, defeated Senator Flavio Bolsonaro, the eldest son of former President Jair Bolsonaro.

The senator, who dominated the first round of the election but lost the runoff by more than 4 million votes, said he would try to overturn the result because of a Supreme Court judgement Sunday to prolong voting by two hours.

Bolsonaro’s refusal to acknowledge defeat parallels his father’s attitude after losing to Lula in 2022. Former President Jair Bolsonaro never conceded the election and was eventually convicted and sentenced to 27 years for organising a coup to stay in office.

But the size of Flavio Bolsonaro’s loss against Lula – more than double the margin of his father’s defeat – and the fact his campaign had asked for an extension because of rains in the south made an annulment implausible, observers said.

“There is a possibility of right-wing protests in the coming days, but it is very improbable that it will lead to the reversal ⁠of the result,” said Mario Braga, a Latin America analyst at risk consultancy RANE.

KING OF COME-BACKS

For Lula, his victory is just another comeback in a career full of them. The 80-year-old was incarcerated between 2018 and 2019 on corruption allegations that were later reversed, allowing him to defeat ​Jair Bolsonaro in the 2022 race.“He is a statesman, a giant,” socialist federal senator Erika Hilton, who was with Lula in Sao Paulo during the vote count, told Reuters.

At times, Lula’s reelection seemed unlikely as voters turned against him and his Workers’ Party amid years of corruption scandals and rising prices, while sweeping social changes left the former metalworker and union leader looking out of touch with an increasingly app-based economy and its growing ranks of informal workers.

An exchange-traded fund on Brazil’s Bovespa index (1325.T), opens new tab listed in Tokyo plummeted about 15% on news of Lula’s victory in Asia trade.

Pollsters reported more voters turned out to support Lula than they had anticipated. Leonardo Barreto, co-founder of consultancy Think Policy, said voters had opted for Lula’s familiar embrace over Bolsonaro’s innovation.“Today people are choosing between change, with some apprehension, and a known path which guarantees certain rights,” he remarked.

Lula referred to a record of lowering poverty and inequality throughout the campaign, while unemployment, illiteracy and deforestation achieved record lows during his third term.

He claimed Bolsonaro will decrease welfare expenditures, backslide on social advances and hand over Brazil’s sovereignty to US President Donald Trump, whose State Department supported a campaign to return the Bolsonaros back to power.

Lula’s victory is a big loss for Trump from a rising band of supportive right-wing Latin American governments that have accepted Washington’s agenda on security and migration.

“He would be very important for creating a point of balance in Latin America,” Reuters quoted Lula’s former foreign minister Celso Amorim as saying. Lula is that equilibrium.

LATE-CAMPAIGN BOOST.

Lula is the first candidate to come second in the first round and win since Brazil’s restoration to democracy in the 1980s.

Lula, president from 2003 to 2011, ran this year on a potent mix of pragmatism and populism that has defined his half-century career in national politics, putting out a number of policies aimed at improving the lives of workers and impoverished Brazilians.

These gained traction with late-campaign promises, from free statewide weekend public transit, which has to be formally filed to Congress, to a 15% boost in his signature welfare program that is being implemented.

Lula also pushed a constitutional amendment that turned into Brazil’s biggest labour reform in decades and approved with broad support in Congress.

THE CHALLENGES THAT LIE AHEAD

But Lula’s fourth term may be his toughest yet, after Brazil elected its most conservative Congress since the restoration to democracy in the 1980s.

Bolsonaro’s Liberal Party (PL) and associated parties would together be able to command more than 280 seats in the lower house and up to 50 seats in the Senate, enough for solid opposition majorities in both chambers.

That could strengthen recent patterns of presidents yielding power to ⁠Congress on the budget, major legislation and crucial nominations.

Lula faces an economy that his administration predicts will expand a feeble 2.3% next year, adding to fiscal difficulties linked to elevated interest rates and public debt that has soared above 82% of GDP, the highest level since the epidemic.

The president’s detractors blame expenditure, although most of the debt growth is due to higher borrowing prices.

Goldman Sachs said it expected Lula to make limited progress cutting spending in a fourth term, as he remains dedicated to a state-led economic strategy.

Rising household debt is also a worry for economists. To tackle the problem, Lula announced a temporary ban on internet betting and a new debt relief plan during the campaign.

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Sahibzada Farhan replaces Saim Ayub in Pakistan ODI squad for tri-series matches

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Pakistan opening batter Saim Ayub has been dropped from the national ODI squad for the remaining matches of the ongoing tri-series.

This is in line with Saim’s stated wish to return to domestic cricket to work on his batting and get his confidence back.

Ayub asked to be allowed to leave the squad and play domestic cricket after talks with the head coach, the Pakistan Cricket Board (PCB) said.

His request was approved by the team management and the national selection committee, who made way for Sahibzada Farhan to be included in the ODI squad as his substitute.

Pakistan have already qualified for the tri-series final after winning three in a row in the competition.

The national side will take on Sri Lanka in the fifth round of the tri-series tomorrow at Gaddafi Stadium.

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Pakistan’s cotton production plunges 60pc in a decade, says ginners’ chief

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Pakistan is the only major cotton-producing country to have had such a dramatic loss and its production has fallen by more than 60% in the past decade, said Ehsanul Haq, chairman of the Cotton Ginners Forum.

Haq added in a statement that lax enforcement of agricultural zoning laws, too much sugarcane planting in designated cotton-growing areas and setting up of new sugar mills were the main causes for the fall.

He urged on enforcement of crop zoning restrictions and preventing sugarcane cultivation in cotton belts to bring back local cotton production. He added after efficient execution of the zoning laws, enhancements should be made to cotton research stations and other supporting measures.

Haq further demanded to provide a legal structure to the planned Pakistan Cotton Board under the leadership of All Pakistan Textile Mills Association (APTMA. He advocated that the Pakistan Central Cotton Committee (PCCC) and its subordinate institutions should be placed under the proposed board.

The reduction in domestic cotton production and quality has created a crisis in the local cotton sector, making Pakistan more dependent on imported cotton and edible oil, putting more pressure on foreign exchange reserves, Haq said.

He claimed the government has failed to come up with a viable strategy to reverse the drop despite a high-level meeting chaired by the Deputy Prime Minister Ishaq Dar approximately a year ago, which decided to establish a cotton board under the direction of APTMA.

Signs have emerged that the decision has started to be implemented after a year of delay, he said.

The proposed board could include representatives of the Pakistan Cotton Ginners Association (PCGA), the Karachi Cotton Association (KCA), the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the National Textile Education Council, private seed companies and concerned government institutions.

Haq also called upon the federal and provincial governments to focus the enforcement of crop zoning restrictions and improve the Pakistan Meteorological Department so that it could deliver prompt and accurate weather forecasts to farmers.

“Cotton prices came under pressure last week due to financial difficulties in the sector, limited buying by textile mills, imports of yarn and fabric under the Export Facilitation Scheme and government inspections of cotton ginning factories,” he said.

Cotton prices fell to Rs18,500 from Rs18,500 per maund, a drop of Rs200, Haq said.

He also expressed concern over the reports of financial scandals involving billions of rupees in the yarn market of Faisalabad and millions of rupees in several cotton ginning facilities in Sindh, saying these developments have added to the uncertainty across the sector.

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