A source involved in negotiations between the United States and Iran told Reuters today (Wednesday) that the draft agreement between the two sides includes establishing a $300 billion private investment fund designed to encourage investment in Iran as part of efforts to reach a final deal ending the war.
According to the report, more than half the amount has already been pledged by various investors, even though the fund has not yet been formally established. The fund, likely to be called the “Reconstruction and Development Fund,” is meant to serve as an economic incentive for both sides to move toward a final agreement.
The source said the fund is a purely private investment mechanism and does not include government funds or grants. According to the source, companies from the United States, Gulf states, Asia, South America, and Africa have already committed to participate in funding, in sectors including energy, logistics, manufacturing, and transportation.
According to the report, the fund was born after Iran initially demanded compensation of roughly $400 billion for war damages—a demand rejected by Washington. Instead, a proposal was developed for a regional investment mechanism that would include loans, credit lines, and direct financing of projects to rebuild damaged infrastructure.
It was also reported that the United States and Iran have agreed on a broader framework to end the war, including cessation of hostilities, opening the Strait of Hormuz, and resuming free shipping. The understandings also include a gradual 60-day process to finalize a comprehensive agreement. According to the report, the fund is separate from parallel negotiations on lifting sanctions and releasing frozen Iranian assets, which are being conducted on a separate track.
However, the fund will not be established or begin operating before a final agreement is signed between the parties. In the interim, according to the source, fund managers will work alongside investors and Iranians to plan future projects and define implementation mechanisms.
Officials in the Iranian government and the Pakistani government, which helped broker the memorandum, did not respond to inquiries on the matter. The White House referred to an interview with Vice President JD Vance, in which he said Iran may receive access to a reconstruction fund of similar scale, subject to compliance with an agreement that includes dismantling the nuclear program and strict oversight restrictions.
According to the report, companies that have already expressed interest in participating in the fund include firms from South Korea, Japan, Singapore, Malaysia, and the United States, but the full list has not been published.