A proposed US$300 billion private investment fund designed to support economic activity in Iran has been included in a framework agreement between Washington and Tehran, with more than half of the planned funding already committed, a source familiar with the discussions told Reuters.
The fund is intended to encourage both sides to reach a final agreement by creating economic incentives tied to investment and reconstruction, the source said, speaking on condition of anonymity because the details have not yet been officially announced.
The framework agreement is expected to be signed on Friday as part of efforts by the United States and Iran to end their conflict, ease economic restrictions and restore stability in the region.
According to the source, companies and investors from multiple regions have pledged more than US$150 billion in commitments across sectors including energy, logistics, manufacturing and transport.
The fund, expected to be called the Reconstruction and Development Fund, is designed as a private investment vehicle and will not involve direct government funding, grants or compensation payments.
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The source said investors from the United States, Gulf Arab countries, Asia, South America and Africa have expressed interest in participating.
The fund is separate from ongoing discussions over the lifting of US sanctions and the possible release of Iranian assets frozen overseas, the source added.
Those issues will follow their own negotiating tracks, with different financial arrangements and timelines.
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A senior Iranian official told Reuters that Tehran had initially sought US$400 billion in compensation from Washington for damages caused during the war, but the United States rejected the request.
The investment fund concept later emerged as an alternative mechanism aimed at supporting economic recovery through private-sector investment.
Under the proposal, regional countries could participate through different forms of support, including arranging loans, providing credit facilities or directly financing reconstruction projects.
Potential projects include damaged industrial facilities, refineries, airports and broader infrastructure affected by the conflict.
Iran, one of the Middle East’s largest economies, has struggled to attract major foreign investment for decades due to repeated rounds of US and international sanctions that have restricted access to global financial markets.
Despite those challenges, the country holds some of the world’s largest energy reserves, including the second-largest proven natural gas reserves and the fourth-largest proven oil reserves globally.
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Iran also has a population of more than 92 million people, a large industrial base and significant opportunities in sectors including petrochemicals, mining, agriculture and tourism.
The proposed investment fund is expected to focus on unlocking some of that economic potential if a final agreement is reached.
The source said the fund would only be established after a “final and satisfactory” agreement between Iran and the United States.
A memorandum of understanding, once signed, would create a 60-day process during which fund administrators would work with Iranian authorities and investors to identify and plan potential projects.
“It’ll only be created once the final deal is signed,” the source said, adding that the next two months would focus on organising investment plans and defining the structure of the fund.
The source did not disclose who would manage the fund, saying key administrative details were still under discussion.
Companies from countries including South Korea, Japan, Singapore, Malaysia and the United States were among those that had made commitments, although a full list of investors was not provided.
The White House referred to comments by Vice President JD Vance in a television interview, in which he said Iran could gain access to a US$300 billion reconstruction fund backed by Gulf states if it complied with terms including nuclear restrictions, removal of enriched material and acceptance of strict inspections.
However, the 60-day memorandum is only a framework and does not represent a final agreement. Negotiators are expected to continue discussions on nuclear issues, sanctions relief and regional security arrangements before any deal is completed.
