A proposed $300 billion private investment fund has emerged as one of the central pillars of the framework agreement between the United States and Iran, with more than half of the planned financing already receiving preliminary commitments from international investors, according to a source with direct knowledge of the negotiations.
The proposal, first disclosed to Reuters on Monday, is intended to encourage large-scale private investment in Iran following the signing of a comprehensive peace agreement expected later this week. The source spoke on condition of anonymity because the plan has not yet been publicly announced as Washington and Tehran prepare for a formal signing ceremony in Switzerland on Friday.
The scale of the proposed fund underscores the economic ambitions behind the peace framework. At approximately $300 billion, the investment vehicle would rank among the largest international private investment initiatives ever proposed for a single country emerging from conflict. By comparison, the amount exceeds Indonesia’s projected 2026 state revenue of 3,153.5 trillion rupiah and planned government expenditure of 3,842.73 trillion rupiah.
According to the source, the fund is designed to provide economic incentives for both governments to complete negotiations on a final peace agreement following the framework announced on Sunday. U.S. and Iranian officials said they had reached an initial understanding to end the conflict that erupted on Feb. 28 after U.S. and Israeli strikes on Tehran.
The framework also includes the lifting of the U.S. naval blockade on Iran and the reopening of the Strait of Hormuz, one of the world’s most strategically important shipping lanes for oil and liquefied natural gas exports.
The source emphasized that the proposed vehicle would operate strictly as a private investment fund rather than a reconstruction or reparations program. It would not include grants, direct government financing or taxpayer money from any participating country.
“The fund will only be established after the final agreement is signed,” the source said. “During the next 60 days, the fund’s administrators will work with Iranian authorities and investors to identify, evaluate and plan projects that will receive financing.”
Companies from the Gulf region, Asia, South America and Africa have already expressed interest in participating, according to the source. Preliminary commitments have reportedly come from firms based in South Korea, Japan, Singapore, Malaysia and the United States, although the identities of individual companies have not been disclosed.
The planned investments would target several key sectors of Iran’s economy, including energy, logistics, manufacturing and transportation, all of which suffered significant disruption during the conflict and years of international sanctions.
A senior Iranian source told Reuters that Tehran initially sought $400 billion in compensation from the United States for damage caused during the war. Washington rejected that proposal, leading negotiators to explore an alternative mechanism centered on private investment rather than direct financial compensation.
The result was the proposed Reconstruction and Development Fund, which would rely on contributions from governments and private institutions across the region through various financial instruments, including loan guarantees, credit facilities and direct project financing.
Priority projects under consideration include the reconstruction of damaged industrial facilities such as the Mobarakeh Steel Complex, oil refineries, airports and other strategic infrastructure affected by the conflict.
The White House referred to comments made Monday by Vice President JD Vance during an interview with CBS News, in which he said Iran could ultimately gain access to the $300 billion reconstruction initiative supported by Gulf partners if it fully complies with the terms of a final agreement.
According to Vance, those conditions include dismantling Iran’s nuclear weapons capability, eliminating its stockpile of enriched nuclear material and accepting a robust international inspection and verification regime to ensure compliance with future commitments.
Iran remains one of the Middle East’s largest economies but has attracted little meaningful foreign direct investment over the past four decades because of successive rounds of U.S.-led international sanctions that largely isolated the country from global capital markets.
Despite those restrictions, Iran possesses substantial long-term economic potential. The country holds the world’s second-largest proven natural gas reserves and the fourth-largest proven oil reserves. It also has a population of more than 92 million people, a relatively young and educated workforce, a diversified industrial base and significant untapped opportunities across the petrochemical, mining, tourism and agricultural sectors.
Supporters of the proposed investment fund argue that private capital could accelerate Iran’s economic recovery while creating incentives for both sides to preserve a lasting peace agreement. Whether the initiative ultimately proceeds, however, will depend on the successful conclusion of negotiations over Iran’s nuclear program, sanctions relief and broader regional security arrangements during the 60-day negotiating period following Friday’s expected signing ceremony.
