Exclusive: US, UAE discussed lifting Assad sanctions in exchange for break with Iran, sources say

BEIRUT/GENEVA/DUBAI, Dec 2 (Reuters) - The U.S. and the United Arab Emirates have discussed with each other the possibility of lifting sanctions on Syrian President Bashar al-Assad if he peels himself away from Iran and cuts off weapons routes to Lebanon's Hezbollah, five people familiar with the matter said.

The conversations intensified in recent months, the sources said, driven by the possible expiry on Dec. 20 of sweeping U.S. sanctions on Syria and by Israel's campaign against Tehran's regional network, including Hezbollah in Lebanon, Hamas in Gaza and Iranian assets in Syria.

Lebanese media have reported that Israel had suggested lifting U.S. sanctions on Syria. But the UAE initiative with the U.S. has not previously been reported. All of the sources spoke on condition of anonymity to discuss the back-room diplomacy.

Syria's government and the White House did not respond to questions from Reuters. The UAE referred Reuters to its statement on bin Zayed's call with Assad.

A U.S. source familiar with the matter said White House officials discussed an overture with Emirati officials, citing the UAE's interest in financing Syria's reconstruction and Assad's "weakened position" after Israel's offensive against Hezbollah.

The possibility of sanctions relief for Assad, while Israel was hitting Iran's allies, created an "opportunity" to apply a "carrot-and-stick approach" to fracture Syria's alliance with Iran and Hezbollah, the U.S. source said.