A Reuters report says a draft understanding between the United States and Iran includes creating a private investment fund worth $300 billion to support reconstruction and development in Iran as part of efforts to reach a final agreement and end the war. According to a source familiar with the talks, more than half the money has already been pledged by international investors, although the fund has not yet been formally established.
The fund is expected to be called the Reconstruction and Development Fund and would serve as an economic incentive for both sides to move toward a final deal. The source said it would be a private financing mechanism only, with no government money or grants, and would involve companies from the United States, Gulf states, Asia, South America and Africa. The planned investments would cover energy, logistics, manufacturing and transport.
The idea reportedly emerged after Iran initially demanded about $400 billion in compensation for war damage, a request Washington rejected. Instead, negotiators put forward a regional investment mechanism that could include loans, credit lines and direct financing for infrastructure projects. The reported broader framework also includes a ceasefire, reopening the Strait of Hormuz and restoring free shipping, along with a phased 60-day process to reach a final deal.
The fund is said to be separate from parallel talks on lifting sanctions and releasing frozen Iranian assets. It will not be launched before both sides sign a final agreement. During the interim period, fund managers, investors and Iranian representatives are expected to plan future projects and design implementation mechanisms. The White House referred to Vice President JD Vance, who said Iran could gain access to a reconstruction fund of similar size if it complies with an agreement that includes dismantling its nuclear program and strict monitoring limits.
