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Reuters Exclusive: Iran Deal Includes $300 Billion Fund, More Than Half Already Committed, Source Says
Machine translation: Dubai, June 16 (Reuters) — A source with direct knowledge of the deal’s details told Reuters that the U.S.-Iran framework agreement envisages a private $300 billion fund to spur investment in Iran, with more than half of the amount already committed.
The source, who spoke on condition of anonymity because the plan has not been officially announced, said the fund is intended to create economic incentives for both sides to reach a final agreement, as Washington and Tehran prepare to sign on Friday.
U.S. and Iranian officials said on Sunday they had agreed on a framework to end their war, which began on February 28, when U.S. and Israeli forces attacked Iran. The framework also includes the United States ending its blockade of Iran and reopening the Strait of Hormuz, a key route for global oil and gas supplies.
The source said the new fund is a private investment vehicle, not a reconstruction or compensation program, and will involve no government money or grants. Companies based in the United States, Gulf Arab states, Asia, South America and Africa have agreed to contribute, the source added.
According to the source, committed investments cover areas including energy, logistics, industrial manufacturing and transportation.
A senior Iranian source told Reuters that Tehran initially sought $400 billion in compensation from the United States for wartime damage, but Washington said it would not pay that amount. The idea of the fund, which is to be called the “Reconstruction and Development Fund,” was proposed afterward.
The Iranian source said the envisaged mechanism would involve regional countries in various ways, including guaranteeing loans, establishing credit lines or directly financing the reconstruction of sites damaged in the war. These include facilities such as the Mobarakeh Steel Complex, refineries and airports, as well as damaged infrastructure more broadly.
Iran, one of the Middle East’s largest economies, has attracted virtually no significant foreign direct investment over the past four decades and has been shut out of global capital markets by successive waves of 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 young, educated population of more than 92 million, a diverse industrial base and substantial untapped potential in sectors ranging from petrochemicals and mining to tourism and agriculture.
The source said the investment fund is entirely separate from parallel negotiations over lifting U.S. sanctions and releasing Iran’s sovereign assets frozen abroad. The two, the source said, are distinct financial mechanisms with different goals and timelines.
The fund will not be established or become operational until a satisfactory final agreement is reached. Once signed, the memorandum of understanding is expected to structure the process over the next 60 days.
“The fund will only be established once a final agreement has been signed. During these 60 days, the fund’s managers will work with the Iranians and investors to plan projects and define their scope,” the source said.
Iran’s Foreign Ministry and Pakistan’s Foreign Ministry, which helped mediate the agreement on the investment fund, did not immediately respond to requests for comment.
A White House spokesperson pointed to Vice President J.D. Vance’s interview with CBS on Monday, in which he said Iran could access a $300 billion reconstruction fund backed by Gulf states if it complied with its agreement with Washington, including dismantling its nuclear program, removing its stockpiles of enriched material, and accepting a strict inspection regime and enforcement of its commitments.
The source did not say how or by whom the fund would be managed, noting that key details still need to be finalized. The source named companies from South Korea, Japan, Singapore, Malaysia and the United States as having made commitments, but declined to provide a full list.
The 60-day memorandum is a framework, not a final agreement, and U.S. and Iranian negotiators are expected to work during this period on several tracks covering nuclear issues, sanctions and regional security.
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