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A $300 billion private investment fund intended to encourage investment in Iran is included in the U.S.-Iran framework agreement, with more than half of the planned amount already committed, Reuters reported, citing a source with direct knowledge of the deal.
The fund is designed to give both Washington and Tehran an economic incentive to complete a final agreement ending the war, the source said on condition of anonymity because the plan has not yet been formally announced.
The U.S. and Iran are expected to sign a memorandum of understanding Friday, beginning 60 days for negotiations on nuclear, sanctions and regional security issues.
The fund’s existence had previously been reported, but more than half of the $300 billion has already been committed and all of the financing will come from the private sector, according to the source.
No government money or grants will be included.
The investment vehicle will be called the Reconstruction and Development Fund, according to the report.
Companies based in the U.S., Gulf Arab states, Asia, South America and Africa have agreed to provide financing.
The pledged investments cover energy, logistics, manufacturing and transportation, the source said.
Companies from South Korea, Japan, Singapore, Malaysia and the U.S. were among those that had made commitments, although the source declined to provide a full list.
The source did not identify who would manage the fund or explain how it would be administered, saying important details had yet to be finalized.
The fund will not be established or begin operating until the U.S. and Iran reach what the source described as a final and satisfactory agreement.
“It’ll only be created once the final deal is signed,” the source said.
“During these 60 days, the fund administrators will work with Iranians and investors to plan and scope projects.”
A senior Iranian source told Reuters that Tehran initially sought $400 billion in compensation from the U.S. for damage caused during the war.
Washington rejected that demand, and the private investment fund was later proposed.
The mechanism could involve regional countries securing loans, creating credit lines or directly financing the rebuilding of sites damaged during the conflict, the Iranian source said.
Potential projects include the Mobarakeh Steel complex, refineries, airports and other infrastructure affected by the war.
The fund is not intended to serve as a reparations or government-led reconstruction program.
It is instead structured as a private investment vehicle aimed at supporting commercial projects and encouraging a final agreement.
The investment mechanism is separate from negotiations over lifting U.S. sanctions and releasing Iranian sovereign assets frozen abroad, according to the source with knowledge of the agreement.
The two financial tracks have different purposes and timelines.
The 60-day memorandum will provide a framework for negotiations but will not constitute a final agreement.
U.S. and Iranian negotiators are expected to hold talks across several areas, including Iran’s nuclear program, sanctions and regional security.
A White House spokesperson referred to an interview Vice President JD Vance gave to CBS on Monday.
Vance said Iran could gain access to a $300 billion reconstruction fund backed by Gulf states if it complied with an agreement with Washington.
He said the conditions would include dismantling Iran’s nuclear program, eliminating its stockpile of enriched material and accepting a strict inspection and enforcement system.
U.S. and Iranian officials announced Sunday that they had agreed on a framework to end the war, which began when U.S. and Israeli forces attacked Iran on Feb. 28.
The framework includes halting the U.S. blockade of Iran and reopening the Strait of Hormuz, a major route for global oil and gas supplies.
The investment fund is intended to encourage both sides to complete negotiations and move toward a final settlement.
Iran’s Foreign Ministry and Pakistan’s Foreign Ministry, which helped mediate the investment fund arrangement, did not immediately respond to requests for comment.
Iran has attracted little significant foreign direct investment during the past four decades because of successive U.S. and international sanctions.
The country has the world’s second-largest proven natural gas reserves and fourth-largest proven oil reserves.
Iran also has a population of more than 92 million, a diversified industrial base and potential investment opportunities in petrochemicals, mining, tourism and agriculture.
The proposed fund would seek to channel private financing into those and other sectors after a final agreement is reached.
More than $150 billion of the planned $300 billion has already been committed, according to the source, although the fund will remain inactive until the negotiations are successfully completed.
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