$300 billion investment plan takes shape in US–Iran framework

The fund is intended to serve as an economic driver to encourage progress toward a final settlement between Washington and Tehran. The source said the plan remains confidential as both sides move toward a potential signing later this week.

US and Iranian officials had earlier agreed on a broad framework aimed at ending hostilities that escalated following military strikes involving US and Israeli forces on Iran on February 28. The proposed arrangement also includes provisions to lift the US blockade on Iran and reopen the Strait of Hormuz, a key global energy route.

The initiative is structured as a private-sector investment vehicle, with no government grants or public funding involved. According to the source, commitments are expected from companies based in the United States, Gulf countries, Asia, South America, and Africa, spanning sectors such as energy, logistics, manufacturing, and transport.

Iranian officials had initially demanded $400 billion in compensation for war-related damages from the United States, but Washington rejected the proposal. This led to the formulation of an alternative financial mechanism now referred to as the Reconstruction and Development Fund.

The mechanism is expected to include regional participation through credit lines, loan guarantees, and direct financing for rebuilding infrastructure damaged during the conflict, including refineries, airports, and industrial facilities.

Iran, despite its vast oil and gas reserves and large young population, has seen limited foreign investment for decades due to sanctions restricting access to global financial systems.

Officials stressed that the proposed fund is separate from ongoing negotiations over sanctions relief and the release of frozen Iranian assets abroad, with both tracks proceeding independently.

The fund will only become operational once a final agreement is formally concluded. A 60-day memorandum of understanding is expected to outline the framework, during which administrators will work with investors and Iranian stakeholders to identify and structure potential projects.

“It will only be established once the final deal is signed,” the source said, adding that preparatory work is already underway.

A White House spokesperson referred to comments by US Vice President JD Vance, who suggested that Iran could access the fund under strict conditions, including nuclear limitations and enhanced inspection mechanisms.

The source also said that investors from South Korea, Japan, Singapore, Malaysia, and the United States are among those participating, although a full list has not been disclosed.

Diplomatic sources indicated that Pakistan and Iran’s foreign ministries played a facilitating role in discussions surrounding the investment framework, though no official confirmation has been issued.

Negotiations are expected to continue over the next 60 days, focusing on nuclear commitments, sanctions policy, and broader regional security arrangements.