US-Iran deal includes creation of $300 bln private fund — Reuters

Lead

A $300 billion fund to rebuild and develop Iran lies at the heart of the memorandum of understanding (MoU) signed between the United States and Iran, but questions over who will finance it remain unresolved. The agreement's text, as reported by multiple sources, outlines a plan for the reconstruction and economic development of Iran, yet it does not specify which parties will contribute to the fund.

Coverage Comparison

Coverage of the fund has varied in emphasis. Dawn reported that the MoU says Washington "undertakes with regional partners to develop a definitive mutually agreed plan" for Iran's reconstruction, but the text does not specify contributors. The South China Morning Post highlighted that US President Donald Trump moved quickly to distance Washington from direct financial responsibility, stating the US would not invest in the fund. TASS — English reported, citing Fox News, that Persian Gulf countries would become members of the fund while the US would not participate. Yonhap News — English noted that the US government has not officially confirmed the fund's details, but reports suggest the agreement combines sanctions relief, release of frozen assets, and the creation of the reconstruction fund.

Key Claims

Fund Structure and Purpose

According to a TASS — English report citing Reuters, the framework agreement provides for the creation of a $300 billion private investment fund, with more than half of the amount already secured through investor commitments. The fund is intended to serve as an economic incentive for the signing of a final agreement between the two sides. The financial mechanism does not involve government financing or grants, with funding to be provided by the private sector. Investors include companies from the United States, the Persian Gulf countries, Asia, South America, and Africa, the report said.

The fund will begin operating only after a final agreement is signed, according to a Reuters source cited by TASS — English. The signing of the MoU is expected to establish a framework for the process over the next 60 days, during which fund administrators will work with the Iranian side and investors on project planning. Preliminary estimates indicate that investments will focus on energy, logistics, manufacturing, and transportation.

US Role and Sanctions

The US will not participate in the fund, according to TASS — English, citing Fox News. The US will control who does business in Iran by granting licenses, exemptions, and permits, the report said. Sanctions against Iran will be lifted only after the signing of a final agreement, which "is only going to get tougher," according to the Fox News report.

President Trump, speaking at the Group of Seven summit in Paris, said the US would not invest in the fund and dismissed reports that it had pressured Gulf states to contribute, as reported by the South China Morning Post. His remarks appeared to contradict comments by US Vice President J.D. Vance, who told CBS that Iran could gain access to a reconstruction fund backed by what he called a "Gulf coast coalition," provided Tehran met its obligations under the deal.

Investor Commitments and Regional Involvement

More than half of the $300 billion fund has already been secured through investor commitments, according to TASS — English, citing Reuters. Persian Gulf countries will become members of the fund, according to TASS — English, citing Fox News. However, US Secretary of State Marco Rubio said that the United States and the Cooperation Council for the Arab States of the Gulf (CCASG) did not address the creation of an investment fund for Iran at their talks in Manama, Bahrain. Rubio said, "No, it was not discussed. The reconstruction - that's way down the road, and that's something that'll be dealt with at the appropriate time in this process."

Rubio also denied that any assets frozen in Qatar have already been transferred to Iran, stating, "I'm not aware of that. As of right now, we're not aware of any money nor have we agreed for any money to be transferred."

Compensation for Iran's Strikes

Arab nations are raising the issue of compensation for damages from Iran's strikes, and Washington plans to discuss it with Tehran during further negotiations, according to TASS — English, citing US Secretary of State Marco Rubio. Speaking to reporters in Manama, Rubio said the topic was raised during a meeting of the CCASG. "They want some sort of funding for reconstruction. They suffered damages; they want to be compensated for those damages," Rubio said. He could not say whether such compensation could potentially be paid from Iran's frozen assets, adding, "I don't know. I'm not going to speculate right now as to how that will actually be worked out."

Perspectives

US Administration

President Trump has stated the US will not invest in the fund, distancing Washington from direct financial responsibility. Vice President JD Vance has indicated that Iran could access a fund backed by Gulf states if it complies with the agreement's terms.

US Secretary of State Marco Rubio

Rubio has said the fund was not discussed at recent US-Gulf talks and denied any transfer of frozen assets to Iran. He acknowledged that Arab nations are seeking compensation for damages from Iran's strikes and said the issue would be addressed in future negotiations.

Gulf States (as reported)

Reports suggest Persian Gulf countries are expected to become members of the fund, though no official confirmation has been provided. The South China Morning Post reported that Trump dismissed claims that the US had pressured Gulf states to contribute.