A $300 billion private investment vehicle, designated in the framework agreed between Washington and Tehran, is intended to spur investment into Iran and to help seal a final deal between the two sides, a source with direct knowledge of the arrangement told Reuters. The source, speaking on condition of anonymity because the plan has not been publicly announced, said more than half of the fund’s capital has already been committed by companies from several regions.
The mechanism, which the source said is to be called the Reconstruction and Development Fund, is structured as a private fund rather than a government reconstruction or reparations programme. The source emphasised that the fund will not be financed through government money or grants.
According to the source, corporate commitments have come from companies based in the United States, Gulf Arab states, Asia, South America and Africa. Sector commitments span energy, logistics, manufacturing and transport, reflecting a portfolio approach aimed at reconstruction and broader development projects.
A senior Iranian source told Reuters that Tehran had initially sought $400 billion in compensation for war damages from the United States, but that Washington declined to provide such payments. The $300 billion fund concept then emerged as an alternative mechanism to mobilise private capital toward reconstruction and development opportunities.
How contributions may be made
The Iranian source explained that regional countries would participate in different ways, including by securing loans, setting up credit lines or directly financing the rebuilding of sites damaged during the conflict. Examples of projects mentioned by the source included industrial complexes such as the Mobarakeh Steel facility, refineries and airports, as well as broader infrastructure affected by the war.
The source noted that Iran has attracted very little significant foreign direct investment over the past four decades, a condition linked in the article to successive waves of international sanctions. The country’s large proven hydrocarbon reserves and a population of more than 92 million were mentioned in the background material as factors that underpin its investment potential across petrochemicals, mining, tourism and agriculture, although those observations reflect context reported alongside the fund plan rather than new elements of the fund itself.
Distinct tracks and timing
The source drew a clear distinction between the investment fund and a separate negotiating track focused on the lifting of U.S. sanctions and the release of Iranian sovereign assets frozen abroad. These are described as two distinct financial mechanisms with separate purposes and timelines.
Operationally, the fund will not be created or become active until a final and satisfactory deal is reached. The memorandum of understanding that parties expect to sign is intended to outline the process over the next 60 days. During this period, fund administrators - whose identities and governance arrangements remain to be determined - are to work with Iranian officials and the pledged investors to plan and scope individual projects.
"It’ll only be created once the final deal is signed," the source said, adding that the 60-day window is meant to give stakeholders time to structure the fund and prioritise projects. The source also declined to provide specifics concerning who will administer the fund, citing details that still need to be resolved.
Public statements and mediation
Officials have indicated progress on broader elements of the framework. U.S. and Iranian officials reportedly agreed on a framework to end the conflict that began when U.S. and Israeli forces attacked Iran on February 28, halt the U.S. blockade of Iran and reopen the Strait of Hormuz. Pakistan’s foreign ministry participated in mediation on the investment fund proposal, according to the article.
When contacted, Iran’s foreign ministry and Pakistan’s foreign ministry did not immediately respond to requests for comment. A White House spokeswoman referenced a television interview in which a U.S. official said Iran could gain access to a $300 billion reconstruction fund backed by Gulf states if it complies with conditions agreed with Washington, including dismantling aspects of its nuclear programme and accepting stringent inspection and enforcement measures.
The source named companies from South Korea, Japan, Singapore, Malaysia and the United States among those that had made commitments, but declined to provide a comprehensive list. The memorandum of understanding is described as a framework rather than a final agreement, and U.S. and Iranian negotiators are expected to work in parallel across multiple tracks during the 60-day period, covering nuclear, sanctions and regional security issues.
What remains unresolved
Key outstanding items identified by the source include the fund’s administrative structure, governance arrangements, and the specific portfolio of projects to be financed. The fund will not be established until the final deal is signed, and the memorandum of understanding is intended to provide a timetable and process for completing those steps.
This article is based on information attributed to a source with direct knowledge of the plan and on statements attributed to senior officials in the course of negotiations. Several operational and governance details remain to be finalised in the run-up to the formalisation of any final agreement.