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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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President Zardari promises to thwart attempts by foreigners to impede Balochistan’s advancement.

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 President Asif Ali Zardari has vowed that attempts by foreign-backed terrorists to obstruct development in Balochistan will be defeated at all costs, stressing that the province’s progress must continue despite security challenges.

Zardari made the remarks during a meeting with Balochistan Chief Minister Mir Sarfraz Bugti at the President’s House, where he was briefed on the overall situation in the province and ongoing development initiatives.

The president said there was a need to ensure effective coordination between the federal and provincial governments to promote peace, development and public welfare in Balochistan.

He stressed that Balochistan, Pakistan’s largest province by area, deserved special attention and adequate resources to support its development.

Zardari said efforts by terrorists operating with foreign backing to create obstacles to Balochistan’s development would be thwarted at every cost.

He expressed confidence that terrorism would eventually be eliminated from the province, saying that the day was not far when Balochistan would be free from terrorism.

The meeting also focused on the province’s overall conditions and development activities currently underway.

Pakistan Peoples Party Women’s Wing President Faryal Talpur and former Balochistan minister Mir Ali Hassan Zehri were also present during the meeting.
 

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Following the missile attack, the UAE suspends all banking and trade relations with Iran.

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 The United Arab Emirates (UAE) has suspended all trade activities, exchanges and financial transactions with Iran until further notice, the foreign ministry said in a statement on Wednesday, citing regional escalation that it said undermined regional and international peace and security.

The announcement came after the UAE’s defence ministry said on Tuesday that it had detected two ballistic missiles launched from Iran, the first such incident reported since a May 4 strike on the Fujairah port.

In a statement later, the ministry said the missiles targeted “maritime traffic” based on its assessments. Both missiles fell into the sea, it said.

Iran’s foreign ministry spokesperson Esmaeil Baghaei rejected early on Wednesday the statement by the UAE, describing it as “baseless.”

Baghaei called on “all regional parties” to refrain from making “unsubstantiated accusations” against Iran, according to Al Jazeera.

The spokesperson said that any assessment of the situation must account for what he called the continued “malicious actions” of the US and Israel against regional peace and security, pointing to what he described as a history of false-flag operations in the region.

The missile launch comes as a 60-day window for US-Iranian peace talks expired on Monday without a breakthrough, raising fears of a new escalation in the conflict that has disrupted shipping through the Strait of Hormuz since February.

“The defence ministry affirms its full readiness to deal with any threats and firmly confront anything that aims to destabilise the state’s security,” it said in a statement.

The UAE’s interior ministry sent a phone alert earlier on Tuesday to residents stating that the situation was safe and people should resume normal activities after an earlier alert warning of a missile threat.

The UAE had accused Iran recently of attacking its state-owned ADNOC vessels while transiting the Strait of Hormuz.

Iran has not claimed responsibility for the attacks on ADNOC vessels. Iran’s Revolutionary Guards have previously threatened action against vessels transiting the strait if they are linked to Tehran’s adversaries or fail to comply with Iranian directives.
 

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Trump claims that a striking agreement between the US and Canada has temporarily halted tariffs.

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US President Donald Trump announced late on Tuesday night that he was putting a three-day pause on new 50% tariffs set to go into effect on Canadian goods on Wednesday, saying the two countries had reached an agreement.

The pause was “based on the fact that Canada and the USA, subject to the finalisation of documents, have a DEAL,” Trump said in a post on Truth Social.

An hour later, Canadian Prime Minister Mark Carney said in a statement that “substantial progress has been made, although there is important work still to be done.”

Trump added in his social media post that the Keystone XL Pipeline – a project cancelled by former President Joe Biden in 2021 after years of indigenous and environmental opposition – “may be awoken from the grave,” but did not provide details.

Trump’s post came after he spoke with Canadian Prime Minister Mark Carney on Tuesday afternoon, their second conversation this week, and after weeks of intense, opaque negotiations.

Existing US auto tariffs had been a sticking point, two industry sources familiar with the talks said earlier.

The new US tariffs would have covered about $20 billion worth of imports and applied regardless of whether Canadian goods qualify for preferential treatment under the US-Mexico-Canada trade agreement, which has shielded much of Canadian industry from earlier US tariffs.

‘Billions of dollars at stake’

Trade experts and industry officials say new tariffs could lead to job losses and business closures in vulnerable sectors, including lumber, wine and dairy. They also warn the dispute could complicate broader USMCA negotiations.

“There are billions in goods per year that were not impacted before, but now are at risk of being impacted significantly,” said Candace Laing, CEO of the Canadian Chamber of Commerce.

“Businesses have been doing a high-wire act for well over a year, holding off on hiring, investment and growing in Canada,” she said.

Canada’s minister responsible for US trade, Dominic LeBlanc, and chief trade negotiator Janice Charette have been in Washington since last week for talks.

On Monday, the Canadian officials met for nearly two hours with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.

Greer has repeatedly cited Canada’s tariffs that followed initial US tariffs, some provinces’ refusal to stock US liquor and Canada’s dairy supply management system among US grievances.

Two sources said one of the main sticking points was US tariffs on Canadian vehicles.

The sides have discussed cutting US Section 232 tariffs on Canadian vehicles to 15% from 25%, with further reductions based on the amount of US content in each vehicle, the sources said.

The details of the deal touted by Trump remained unclear.

Counting tariff deductions

A major point of contention was how tariff deductions based on content should be calculated, with Washington demanding that only US-produced content be counted. Canada pushed for all North American content, including Canadian and Mexican parts, to be counted, the sources said.

Earlier on Tuesday, the US Commerce Department released new rules for automakers exporting from Canada and Mexico to certify their current levels of US content for tariff deductions, reducing the complicated exercise to once per year from twice.

But the Federal Register notice said automakers must re-certify vehicles’ American content by September 30 for them to claim deductions in the new annual cycle starting December 1.

A Canadian government source said last week that all options remained on the table if the new tariffs take effect, including government support for affected domestic industries and a possible suspension of bilateral trade talks, but the source expressed hope that the US was keen to reach a deal.

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