Iran deal includes $300bn pvt fund

A $300 billion private investment fund aimed at spurring economic recovery in Iran has been outlined in the US-Iran framework agreement, with more than half of the commitments already secured, according to a source familiar with the deal.

The fund, designed to provide both sides with economic incentives to finalise a peace accord, is expected to be formally announced as Washington and Tehran prepare to sign the framework on Friday. The agreement, reached Sunday, seeks to end the war that began on February 28 when US and Israeli forces attacked Iran. It also calls for lifting the US blockade and reopening the Strait of Hormuz, a vital artery for global oil and gas supplies.

Unlike reconstruction or reparations programmes, the fund will rely entirely on private capital, with no government grants. Companies from US, Gulf states, Asia, South America and Africa have pledged investments across energy, logistics, manufacturing, and transport.

Iran had initially demanded $400 billion in compensation for war damages, but Washington rejected the request. Instead, the Reconstruction and Development Fund was conceived, with regional partners expected to contribute through loans, credit lines, or direct financing of damaged infrastructure, including steel plants, refineries, airports, and other facilities.

Despite its vast natural gas and oil reserves, Iran has been largely excluded from global capital markets for decades due to sanctions. With a population of over 92 million, a diversified industrial base, and untapped potential in petrochemicals, mining, tourism, and agriculture, the fund could mark a turning point for foreign investment in the country.

The initiative is separate from negotiations over lifting US sanctions and releasing frozen Iranian assets. A 60‑day memorandum of understanding will structure the process, during which fund administrators will collaborate with Iranian officials and investors to scope projects.

Vice President JD Vance confirmed in a CBS interview that Iran could access the fund if it dismantles its nuclear programme. While details of fund administration remain unresolved, companies from South Korea, Japan, Singapore, Malaysia, and the US are among those committed. Negotiations will continue across nuclear, sanctions, and regional security tracks in the coming weeks.