WASHINGTON/TEHRAN: A proposed $300 billion private investment fund aimed at accelerating economic recovery and development in Iran has been included in the framework agreement reached between the United States and Iran, according to a source familiar with the negotiations.
The fund, known as the Reconstruction and Development Fund, is intended to encourage both sides to move toward a final agreement after reaching a preliminary framework to end months of conflict and ease tensions in the region.
According to the source, commitments exceeding $150 billion have already been secured from companies and investors across five regions, including the United States, Gulf countries, Asia, South America and Africa. The investments are expected to target sectors such as energy, logistics, transportation and manufacturing.
The source stressed that the fund would be entirely private and would not include government financing, grants or direct compensation payments. It is also separate from ongoing discussions regarding the lifting of US sanctions and the release of Iranian assets frozen abroad.
The initiative reportedly emerged after Iran sought compensation from Washington for damages caused during the conflict. While the US rejected the compensation proposal, negotiators explored alternative mechanisms that could help rebuild damaged infrastructure and attract foreign investment.
Projects expected to benefit from the fund include industrial facilities, refineries, airports and other infrastructure affected by the war. Iran has struggled to attract significant foreign investment for decades due to international sanctions, despite possessing vast oil and gas reserves and a large industrial base.
The fund will only become operational once a final agreement is signed. Under the current memorandum of understanding, US and Iranian negotiators are expected to spend the next 60 days working on key issues, including nuclear commitments, sanctions relief and regional security arrangements.
US Vice President JD Vance has indicated that Iran could gain access to the reconstruction fund if it complies with the terms of a comprehensive agreement, including strict nuclear oversight and enforcement measures.