A $300 billion private investment fund aimed at supporting economic development in Iran has been outlined in a framework agreement between the United States and Iran, with more than half of the total amount already committed, according to a source with direct knowledge of the plan who spoke to Reuters.
The fund is designed to encourage both sides to reach a final agreement by creating an economic incentive linked to future investment opportunities. The source said commitments have exceeded $150 billion across five regions, although the fund has not yet been formally announced.
The investment vehicle is expected to be established only after a final US-Iran deal is signed. The source said the current memorandum of understanding is intended to organize the process over a 60-day period, during which fund administrators would work with Iranian officials and investors to define potential projects.
The source said the fund, expected to be called the Reconstruction and Development Fund, is a private investment mechanism and will not include government funding, grants or public money. It is separate from discussions over frozen Iranian assets and possible sanctions relief.
Companies based in the United States, Gulf Arab states, Asia, South America and Africa have committed financing, according to the source. The pledged investments cover sectors including energy, logistics, manufacturing and transportation.
A senior Iranian source said Tehran had initially sought $400 billion from Washington as compensation for war-related damages, but the United States rejected providing such funds. The investment fund concept later emerged as an alternative mechanism focused on private-sector financing.
The Iranian source said regional countries could contribute through various methods, including securing loans, creating credit lines or directly financing reconstruction projects. Potential areas include facilities damaged during the conflict, such as the Mobarakeh Steel complex, refineries, airports and other infrastructure.
Iran has attracted limited foreign direct investment over the past four decades as a result of repeated US and international sanctions restricting access to global financial markets. The country has some of the world’s largest proven oil and natural gas reserves, along with a population of more than 92 million people and industrial sectors including petrochemicals, mining, tourism and agriculture.
The investment fund is separate from another negotiating track involving the lifting of US sanctions and the release of Iranian sovereign assets frozen abroad. The source said the two mechanisms have different purposes and timelines.
The fund’s creation depends on the completion of a final agreement between Washington and Tehran. The source said key details, including the administration structure and management of the fund, remain under discussion.
A White House spokeswoman referred to comments by Vice President JD Vance, who said Iran could gain access to a $300 billion reconstruction fund backed by Gulf states if Tehran complies with an agreement with Washington, including conditions related to its nuclear program, enriched material stockpiles and inspection requirements.
The source identified companies from South Korea, Japan, Singapore, Malaysia and the United States among those that have made commitments but did not provide a complete list of participating firms.
The proposed 60-day framework is not a final agreement. US and Iranian negotiators are expected to continue discussions during that period across multiple areas, including nuclear issues, sanctions and regional security matters.
