US and Iran Agree on $300 Billion Investment Fund
The US and Iran have reached a framework agreement to create a $300 billion private investment fund for Iran's economy, which will start after a final deal is signed.
The United States and Iran have agreed in principle to establish a $300 billion private investment fund to support Iran's economy, Reuters reported citing sources.
The fund is designed as a private investment mechanism, not a government aid or reparations program. According to sources, more than half of the amount has already been committed. Companies from the US, Gulf states, Asia, South America, and Africa have expressed interest in investing in Iran. Planned investments cover sectors such as energy, logistics, and transport.
Initially, Iran demanded $400 billion in compensation for military damage, but Washington refused. This led to the idea of a fund, originally called the "Reconstruction and Development Fund." The mechanism involves regional countries providing assistance through loans, credit lines, or direct financing to restore facilities damaged during the conflict, including the Mobarakeh steel complex, oil refineries, and airports.
Iran, one of the largest economies in the Middle East, has been largely cut off from foreign direct investment for nearly four decades due to US and international sanctions. The fund will only become operational after Washington and Tehran sign a final agreement. A memorandum of understanding, to be signed on June 19, commits both sides to negotiate within 60 days and reach a final deal.
On June 15, US President Donald Trump announced a peace agreement with Iran. The memorandum requires Iran to unblock the Strait of Hormuz for all commercial vessels, while the US will lift its naval blockade of Iranian ports. Trump said details of the document would be made public within days.
