A private $300 billion investment fund for Iran is described in a memorandum of understanding between the United States and Iran, and a source with direct knowledge told Reuters on Tuesday that commitments already cover more than half the total. The source said the fund is intended to give both sides an economic incentive to reach a final deal, and that Washington and Tehran are preparing to sign the initial framework on Friday to end the war.
The source said the new vehicle would be a private investment tool, not a reparations or reconstruction aid program, and would not include government grants or official money. According to the account, companies based in the United States, Arab Gulf states, Asia, South America and Africa have already agreed to contribute, with pledged investments including energy, logistics, manufacturing and transportation.
Al-Arabiya published the text of the memorandum on Tuesday night, after an identical document was circulated online by Iranian exiles. Reuters said the authenticity of the document was not fully clear, but its wording matched other reports on the deal. In the published text, Article 6 says the United States, together with regional partners, will create a comprehensive program for the reconstruction and economic development of the Islamic Republic of Iran, with at least $300 billion in financing secured, and that the implementation mechanism will be drafted within 60 days.
If accurate, the clause means the fund would only begin operating as part of a final agreement, during a 60-day negotiating period meant to settle major disputes, especially over Iran’s nuclear program. A senior Iranian source told Reuters that Tehran originally asked for $400 billion in compensation for war damage, but Washington refused. The idea for the fund, called the Reconstruction and Development Fund, emerged afterward. The mechanism reportedly envisions regional states contributing through loan guarantees, credit lines or direct financing for damaged sites such as the Mobarakeh steel plant, refineries, airports and other conflict-hit infrastructure.
The source said the fund is completely separate from a parallel track on lifting US sanctions and releasing frozen Iranian assets abroad, calling them “two separate financial mechanisms with different goals and timelines.” Reuters said the fund will not be launched until a “final and satisfactory” deal is completed. The source added that managers will work with Iranians and investors during the 60-day talks to define the scope of projects, but said key details, including who will run the fund, have not yet been finalized. The White House referred questions to Vice President JD Vance’s CBS interview, in which he said Iran could gain access to a Gulf-backed $300 billion reconstruction fund if it meets the agreement’s conditions, including dismantling its nuclear program, removing its enriched material stockpile and accepting strict monitoring and enforcement.
