Iran Deal Includes $300bn Fund for Investment

A proposed agreement between the United States and Iran includes plans for a $300 billion private investment fund aimed at boosting economic activity in Iran, with more than half of the amount already pledged, according to a source familiar with the discussions.

The fund is expected to serve as an economic incentive for both sides to finalise a broader agreement, as Washington and Tehran move closer to signing a memorandum of understanding intended to end months of hostilities and restore economic ties.

Officials from both countries said they had reached a framework agreement to halt the conflict that began after military strikes inside Iran on February 28 and to reopen the Strait of Hormuz, a critical route for global oil and gas shipments.

According to the source, the proposed investment mechanism — tentatively named the Reconstruction and Development Fund — would be privately financed and would not involve direct government funding, grants or reparations.

Companies from the United States, Gulf countries, Asia, South America and Africa have reportedly committed funding for projects spanning energy, transport, logistics and manufacturing.

The source said the investment plan emerged after Tehran initially sought financial compensation for war-related damage, while Washington declined to provide direct payments.

Under the proposal, regional partners could contribute through loans, credit facilities or direct financing for rebuilding damaged infrastructure, including industrial facilities, airports, refineries and transport systems.

Iran, one of the Middle East’s largest economies, has seen limited foreign investment over the past four decades due to repeated international sanctions that restricted access to global financial markets.

Despite those constraints, the country holds the world’s second-largest proven natural gas reserves and fourth-largest oil reserves, alongside a population of more than 92 million and significant industrial potential.

The proposed fund is expected to remain separate from ongoing negotiations over sanctions relief and the release of frozen Iranian assets abroad, which are being discussed under separate financial arrangements.

Officials said the investment fund would only become operational after a final and comprehensive agreement is reached. Once signed, the memorandum of understanding is expected to guide negotiations over the following 60 days.