The UAE has agreed to unlock billions of dollars for Iran, reported Reuters citing four sources, in a tactical shift after weeks ​of Iranian attacks on the wealthy Gulf state during the US-Israeli war with the Islamic Republic.

Word of the move by the UAE to seek de-escalation and which has not been previously reported, coincides with ‌the final stages of broader negotiations between Tehran and Washington on ending the war, talks that diplomats say could involve the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under U.S. sanctions.

In the past month, the UAE, which was heavily targeted by Iran at the height of the war, has been spared fresh strikes, while Iran has trained its missiles and drones on Kuwait and Bahrain. The last known direct attack by Iran on the UAE was more than a month ago - a May 4 strike ​on the Gulf state's Fujairah port on the Gulf of Oman.

Two regional sources told Reuters the UAE had agreed to release a total of $10 billion, more than $3 billion of which had already been delivered, reported Reuters.

The UAE foreign ministry issued a statement early on Saturday categorically denying reports of the transfer “including allegations concerning $3 billion”.

The White House did not immediately respond to a request for comment on the move. Also there was no immediate comment from the Iranian authorities.

The arrangement signals a striking pivot from the open animosity of UAE-Iran relations through much of the war, when Iranian attacks emptied Dubai's hotels, drove some expatriates to flee and shook the reputation for safety that is central to the country's position as a premier business hub, reported Reuters.

One of the sources with knowledge of the arrangement said the move offered a way to help solve the conflict between the US and Iran without either side crossing its red line: Iran can claim it extracted compensation for war damages, Washington can insist it paid nothing, and Abu Dhabi obtains its own security and ​Dubai's hub status, while framing the move as an ​investment in rebuilding regional trust.

The other source with knowledge ⁠of the arrangement said that in return for the disbursement, Iran would halt missile and drone attacks on the UAE, and there would be a rebuilding of bilateral ties, including intelligence sharing and economic cooperation.

The source added that Iran had approached at least two other Gulf Arab countries to make a similar arrangement.

The first source with knowledge of the ​arrangement said talks had started several weeks ago but quickened pace when officials of Iran's powerful Revolutionary Guards visited Abu Dhabi last week to meet Sheikh Tahnoun bin ​Zayed al Nahyan, the UAE's ⁠national security adviser and deputy ruler of Abu Dhabi, and stayed at his guest house.

That trip was followed by a visit by UAE officials to Tehran to negotiate the details of the mechanism, said the Reuters report.

The UAE-Iranian arrangement is set to unfold against a complex financial backdrop potentially involving Dubai, the UAE's main commercial hub and one of Tehran's most critical economic lifelines.

Dubai's banks have long held substantial Iranian-linked deposits, much of them now immobilized under US sanctions that police the global dollar-clearing ⁠system and expose ​any foreign bank dealing with blacklisted Iranian entities to being cut off from the American financial network, it added.