A proposed $300 billion private investment fund aimed at boosting economic activity in Iran has reportedly emerged as a key component of the framework agreement being discussed between Washington and Tehran. While speculation initially suggested that the United States would directly finance Iran’s reconstruction, US President Donald Trump firmly rejected such claims, describing reports of American payments to Iran as “fake news.”
According to a source familiar with the negotiations, more than half of the proposed investment amount has already been pledged ahead of an anticipated agreement between the two countries. Trump, after signing a preliminary memorandum of understanding with Iran, reiterated on Truth Social that the United States would not be handing over billions of dollars to Tehran. He stressed that Iran had agreed not to pursue nuclear weapons and dismissed reports suggesting Washington would provide direct financial assistance.
Sources told Reuters that the proposed fund is intended to function as a private investment vehicle rather than a reconstruction or reparations program. It would not involve government grants or taxpayer money. Instead, companies from the United States, Gulf nations, Asia, South America, and Africa are expected to invest in sectors such as energy, transportation, logistics, and manufacturing. Firms from countries including South Korea, Japan, Singapore, Malaysia, and the United States have reportedly expressed interest, although a complete list of investors has not been disclosed.
An Iranian source indicated that Tehran had initially sought $400 billion in compensation for war-related damages, a proposal that Washington rejected. The concept of a Reconstruction and Development Fund reportedly emerged afterward, with regional countries expected to participate through loans, credit facilities, and direct financing for the rebuilding of key infrastructure, including steel plants, refineries, airports, and other strategic assets.
Despite being one of the Middle East’s largest economies, Iran has attracted limited foreign direct investment over the past four decades due to US and international sanctions. The country possesses the world’s second-largest proven natural gas reserves and fourth-largest oil reserves. Its population of more than 92 million, combined with opportunities in petrochemicals, mining, tourism, and agriculture, has long made Iran a potentially attractive market for investors.
According to the report, the investment fund is separate from ongoing discussions related to sanctions relief and the release of Iranian assets frozen abroad. It would only be established after a final agreement is reached. The memorandum of understanding signed by both sides is expected to serve as a roadmap for the next 60 days, during which fund administrators and potential investors will work with Iranian officials to identify and plan projects.
Details regarding the management and operation of the fund are still being finalized. Earlier reports suggested that the money would not be transferred directly to the Iranian government but would instead support companies investing in the country. Access to the fund is expected to depend on Iran’s compliance with the memorandum and the continuation of a 60-day ceasefire extension.
US officials have reportedly insisted that Iran must meet several conditions to receive the full benefits of the agreement, including abandoning any pursuit of nuclear weapons and ending support for regional militant groups. Future discussions are also expected to address Iran’s enriched uranium stockpiles and its nuclear enrichment activities. The draft framework reportedly calls for maintaining the current status of Iran’s nuclear program while negotiations continue, with the United States refraining from imposing additional sanctions or increasing military deployments during the interim period.
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