- Proposed $300 billion private fund targets large-scale Iran investment.
- Over half the financing is committed by diverse global companies.
- It follows US-Iran framework agreement to end conflict.
- Fund is private, rebuilding sites, separate from sanctions talks.
A proposed $300 billion private investment fund aimed at unlocking large-scale investment in Iran forms a central part of the framework agreement reached between Washington and Tehran, according to a source with direct knowledge of the arrangement.
More than half of the planned financing has already been committed, the source told Reuters, speaking on condition of anonymity because details of the initiative have not yet been formally announced. The fund is intended to provide a strong economic incentive for both sides as they move towards finalising an agreement expected to be signed on Friday.
The development follows Sunday’s announcement by US and Iranian officials that they had agreed on a framework to end the conflict that began after US and Israeli forces attacked Iran on February 28. The agreement also envisages ending the US blockade of Iran and reopening the Strait of Hormuz, a critical route for global oil and gas shipments.
Private Investment Vehicle at Heart of Agreement
The proposed fund will operate as a private investment vehicle rather than a reconstruction programme or a compensation mechanism. According to the source, it will not receive government funding or grants from any participating country.
Companies based in the United States, Gulf Arab nations, Asia, South America and Africa have already agreed to provide financing. The pledged investments span several sectors, including energy, logistics, manufacturing and transport.
Officials involved in the discussions view the fund as a practical tool to encourage economic engagement while supporting broader efforts to secure a lasting settlement between the two countries.
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How the Fund Proposal Emerged
A senior Iranian source told Reuters that Tehran had initially sought $400 billion in compensation from the United States for damage caused during the war. Washington, however, indicated that it would not provide such payments.
The concept of the Reconstruction and Development Fund subsequently emerged as an alternative mechanism. Under the proposal, regional countries would contribute through a range of financial arrangements, including loans, credit facilities and direct project financing.
The initiative is expected to support the rebuilding of sites damaged during the conflict, including the Mobarakeh Steel complex, refineries, airports and other infrastructure affected by the war.
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Focus on Long-Term Investment and Economic Potential
Iran has remained largely cut off from significant foreign direct investment for nearly four decades due to successive rounds of US and international sanctions that restricted its access to global capital markets.
Despite those constraints, the country possesses some of the world’s largest energy reserves, including the second-largest proven natural gas reserves and the fourth-largest proven oil reserves. Iran also has a population of more than 92 million people, a young and educated workforce, a diversified industrial base and substantial untapped opportunities across sectors such as petrochemicals, mining, tourism and agriculture.
The source said the proposed investment fund is entirely separate from ongoing discussions concerning the lifting of US sanctions and the release of Iranian sovereign assets frozen abroad. Those negotiations are being handled through a separate process with different objectives and timelines.
The fund itself will not be established or begin operations until a final agreement is successfully concluded. Once signed, the memorandum of understanding is expected to provide a framework for advancing the process over the next 60 days.
