A proposed United States–Iran framework agreement reportedly includes plans to establish a private investment fund worth approximately US$300 billion (30,000 crore dollars) aimed at encouraging investment in Tehran, according to a source familiar with the discussions, cited by the organization Reuters.
The source said that more than half of the proposed fund’s capital has already been pledged in principle by prospective investors. The initiative is designed to provide economic incentives for both parties to reach a durable settlement agreement. It has not yet been publicly announced, as Washington and Tehran are preparing for the formal signing of a deal expected later this week.
Background to the proposed agreement
Following an outbreak of conflict after an attack involving United States and Israeli forces on 28 February, discussions between officials from the United States and Iran have advanced towards a draft framework aimed at ending hostilities. According to statements made by officials, the proposed agreement includes provisions to lift restrictions on Iranian ports and reopen the Strait of Hormuz, a critical maritime route for global oil and gas shipments.
A senior Iranian source, speaking to Reuters, said that Iran had initially sought US$400 billion in compensation for wartime damage. However, the United States rejected the proposal, stating that it would not provide direct reparations.
Structure of the proposed fund
Instead of compensation, negotiators developed the idea of a “Reconstruction and Development Fund.” This fund would be entirely private in structure, with no direct government grants. It would be financed by companies from the United States, Gulf Arab states, Asia, South America, and Africa.
The fund is intended to function independently of parallel negotiations concerning the lifting of sanctions and the release of frozen Iranian state assets abroad. Officials involved in the talks have described the two processes as separate, with different objectives and timelines.
A senior Iranian source stated that regional countries would contribute in multiple ways, including credit guarantees, loan facilitation, or direct financing of reconstruction projects. These projects would target damaged infrastructure such as steel plants, oil refineries, airports, and other industrial facilities, including those operated by Mobarakeh Steel Company.
Economic context
Despite being one of the largest economies in the Middle East, Iran has experienced limited foreign direct investment over the past four decades. This is largely attributed to sustained sanctions imposed by the United States and other international actors, which have significantly restricted access to global capital markets.
Iran holds the second-largest proven natural gas reserves in the world and ranks fourth in global oil reserves. The country also has a population of more than 92 million, with a relatively young and educated workforce. Its economic structure includes sectors such as petrochemicals, mining, tourism, agriculture, and industrial manufacturing, all of which are identified as areas with long-term development potential.
Investment participation and timeline
The proposed fund is not yet operational and will only be established after a final agreement is signed. According to the source, the 60-day implementation period following the signing will be used by administrators to work with Iranian representatives and investors to define project scope and investment frameworks.
Investors reportedly include companies from South Korea, Japan, Singapore, Malaysia, and the United States. However, the full list of participating firms has not been disclosed.
The United States administration has indicated that access to the proposed reconstruction fund would depend on Iran meeting specific conditions outlined in the framework agreement. These reportedly include halting its nuclear programme, dismantling enriched uranium stockpiles, and agreeing to strict monitoring and enforcement mechanisms.
A spokesperson for the White House referenced remarks made by US Vice President JD Vance, stating that compliance with the agreement could grant Iran access to Gulf-funded reconstruction financing estimated at US$300 billion.
Key features of the proposed fund
| Category |
Details |
| Estimated size |
US$300 billion |
| Structure |
Private investment fund (no government grants) |
| Purpose |
Reconstruction and economic development projects in Iran |
| Funding sources |
Companies from US, Gulf states, Asia, South America, Africa |
| Initial pledges |
More than 50% reportedly committed in principle |
| Target sectors |
Steel, oil refining, airports, infrastructure |
| Key participating countries |
South Korea, Japan, Singapore, Malaysia, United States |
| Activation condition |
Final signed US–Iran agreement |
| Implementation window |
60 days after agreement signing |
| Governance |
Not yet finalised |
Negotiation status
Officials involved in the process stated that no final decisions have been made regarding governance structures or administrative leadership of the fund. These details remain under discussion due to unresolved technical and political issues.
The framework agreement itself is described as non-final, serving as a basis for continued negotiations between the United States and Iran on nuclear policy, sanctions, and regional security arrangements over the coming months.
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