US-Iran peace deal: A $300 billion private fund aimed at encouraging investment in Iran is reportedly part of the US-Iran framework agreement. Earlier US President Donald Trump denied reports that Washington would pay Iran to rebuild, calling such claims false. 

A source familiar with the deal told Reuters that over half of the proposed amount has already been committed ahead of a planned signing between Washington and Tehran on Friday.

Trump, after signing a preliminary memorandum of understanding between the United States and Iran, stated on Truth Social that the US was not paying Iran billions of dollars. He wrote that Iran had agreed never to develop a nuclear weapon and dismissed reports of a $300 million payment as fake news.

As per the report, the fund is designed as a private investment vehicle, not a reconstruction or reparations programme, and will not include government money or grants. Companies from the US, Gulf Arab states, Asia, South America and Africa have pledged financing in sectors such as energy, logistics, manufacturing and transport. The source named companies from South Korea, Japan, Singapore, Malaysia and the US among those committed but did not provide a full list.

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An Iranian source told the news agency that Tehran initially sought $400 billion in compensation from the US for war damage, which Washington refused. The Reconstruction and Development Fund concept emerged afterward, with regional countries expected to contribute through loans, credit lines or direct financing to rebuild damaged sites like the Mobarakeh Steel complex, refineries, airports and other infrastructure.

Iran, with one of the Middle East's largest economies, has seen little foreign direct investment over the past 40 years due to US and international sanctions. The country holds the world's second-largest proven natural gas reserves and fourth-largest oil reserves. It also has a young, educated population of over 92 million and potential in petrochemicals, mining, tourism and agriculture.

The investment fund is separate from negotiations on lifting US sanctions and releasing Iranian assets frozen abroad. It will only be created after a final agreement is reached. The memorandum of understanding signed is intended to guide the process over the next 60 days, during which fund administrators will work with Iranians and investors to plan projects, the report stated.

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Details of the fund's administration are still being finalised. Earlier reports indicated the fund would not send money directly to the Iranian government but support companies investing in Iran. Access to the fund depends on Iran adhering to the memorandum and a 60-day ceasefire extension.

US officials have stated Iran must meet conditions such as not building nuclear weapons and ending support for regional militant groups to receive full benefits. Discussions will also cover Iran's enriched uranium and future uranium enrichment. The draft memorandum calls for maintaining the current status of Iran's nuclear activities while negotiations continue, with the US refraining from new sanctions and military deployments during this period.
 

Published on: Jun 17, 2026 8:01 AM IST