The US–Iran framework agreement includes the creation of a $300bn private-sector investment vehicle aimed at supporting reconstruction and economic development in Iran, with more than half of the capital already committed, according to a report by Reuters citing an unnamed source familiar with the discussions.
The fund, which would be named the Reconstruction and Development Fund, is designed to channel private capital into Iran across sectors including energy, logistics, manufacturing, transport and infrastructure. It is structured entirely around private investment commitments, with no direct government funding involved, according to the source.
The initiative is intended as part of a broader diplomatic package to support a wider political settlement between Washington and Tehran, including an end to ongoing conflict and the reopening of key trade routes such as the Strait of Hormuz. The fund would only be formally established once a final agreement is signed.
Investors reportedly include companies and institutions from the US, Gulf states, Asia, South America and Africa, with contributions structured through mechanisms such as loans, credit lines and direct equity participation in reconstruction projects. However, key operational details – including governance, oversight and allocation frameworks – have yet to be finalised.
The proposal is separate from parallel negotiations over sanctions relief and access to frozen Iranian assets, and is being positioned as a distinct financial mechanism linked specifically to post-conflict reconstruction rather than compensation or reparations.
Iran had initially sought significantly higher compensation for war-related damage, but the current structure reflects a compromise centred on mobilising external private capital rather than direct sovereign transfers.
The fund would be deployed across large-scale rebuilding efforts, including industrial facilities, energy infrastructure and transport assets damaged during the conflict, as well as broader economic development projects.
Iran’s large natural resource base, demographic profile and industrial capacity are seen by proponents as key drivers of potential long-term investment returns, despite decades of limited foreign direct investment due to sanctions.
The framework remains subject to negotiation over a 60-day period, during which investors and officials are expected to refine project pipelines and financing structures ahead of any formal launch.
