US$300 Billion Investment Fund Prepared for Iran, Half Already Committed
A massive private investment fund worth US$300 billion, or approximately Rp5,310 trillion, is part of the framework agreement between the United States and Iran. Interestingly, more than half of the funds have reportedly already received commitments from investors.
A source with direct knowledge of the negotiations told Reuters the fund is designed to create economic incentives for both parties to reach a final agreement. “The fund will only be formed after the final deal is signed. During these 60 days, the fund administrator will work with Iran and investors to plan and determine the scope of projects,” the unnamed source said on Wednesday.
The framework agreement was announced after the two countries agreed on Sunday to end the conflict that erupted following a joint US-Israeli attack on Iran on 28 February. The deal also includes the cessation of the US blockade of Iran and the reopening of the Strait of Hormuz, a vital global trade route for oil and gas.
According to the source, the fund, to be named the Reconstruction and Development Fund, is a private investment vehicle, not a government aid programme or war reparations. Its funding will come from companies based in the US, Arab Gulf states, Asia, South America, and Africa. Committed investments will be directed towards the energy, logistics, manufacturing, and transport sectors. Companies from South Korea, Japan, Singapore, Malaysia, and the US have reportedly made commitments, though the full list of investors has not been disclosed.
A senior Iranian source revealed that Tehran had initially requested US$400 billion in war compensation from Washington. When the US rejected this demand, the idea of creating an investment fund emerged as an alternative to help rebuild Iran’s economy and infrastructure. The scheme allows regional countries to contribute through loan guarantees, credit lines, or direct funding for reconstruction projects. Potential investment targets include the Mobarakeh steel complex, oil refineries, airports, and other infrastructure damaged during the conflict.
For nearly four decades, Iran has struggled to attract foreign investment due to US and international sanctions, despite holding the world’s second-largest natural gas reserves and fourth-largest oil reserves, along with a population of over 92 million and a relatively diverse industrial base. The source stressed that this investment fund is separate from negotiations regarding the lifting of US sanctions or the release of frozen Iranian assets abroad, with both tracks running in parallel but having distinct objectives and mechanisms.
In an interview with CBS referenced by the White House, US Vice President JD Vance stated that Iran could access the US$300 billion reconstruction fund if it fully complies with the terms of the agreement with Washington, including dismantling its nuclear programme, eliminating stockpiles of enriched material, and accepting a strict international inspection regime. Negotiators from both countries will continue discussions on nuclear issues, sanctions, and regional security over the next 60 days before a final agreement is signed.