More than $150B committed to Iran fund under US framework
Shafaq News- Middle East
A $300 billion private investment fund, with more than half of its value already committed, has emerged as a key economic incentive in the US-Iran framework agreement, a source told Reuters.
The fund is designed to push both sides toward a final deal after US and Iranian officials agreed on a framework to end the war, halt the US blockade on Iran, and reopen the Strait of Hormuz, which carries roughly 20% of the world’s oil.
The vehicle will be private, not a reconstruction or reparations program, and would include no government money or grants. Companies based in the United States, Gulf Arab states, Asia, South America, and Africa have agreed to commit financing, with pledged investments spanning energy, logistics, manufacturing, and transport.
Another senior Iranian source told the outlet that Tehran had initially sought $400 billion in compensation for war damage from Washington, but the United States refused to provide compensation, leading to the proposed fund as a separate investment mechanism.
The fund, expected to be named the Reconstruction and Development Fund, would not be created or become operational until a “final and satisfactory” agreement is signed. During the 60-day memorandum period, fund administrators are expected to work with Iranian officials and investors to plan and scope projects, including damaged industrial and infrastructure sites.
The proposed fund is also separate from parallel talks on lifting US sanctions and releasing Iranian sovereign assets frozen abroad.
Still, the framework remains short of a final settlement. US and Iranian negotiators are expected to work across several tracks during the 60-day period, including nuclear restrictions, sanctions relief, and regional security arrangements. US Vice President JD Vance earlier acknowledged that Iran could gain access to a $300 billion reconstruction fund if it complies with an agreement with Washington, including dismantling its nuclear program, eliminating its enriched material stockpile, and accepting a strict inspection and enforcement regime.
Iran could begin selling oil and fuel once the memorandum is signed, with banking, transport, and insurance services included to facilitate those sales, but access to benefits would “depend on Tehran complying with the agreement’s terms.” Those conditions include Iran not obtaining a nuclear weapon, neutralizing enriched material, and not interfering with free navigation in the Strait of Hormuz.
