$300 Billion Private Fund Proposed to Drive Iran Reconstruction and Investment

A proposed $300 billion private-sector investment fund aimed at accelerating reconstruction and economic development in Iran has emerged as a key component of the recently agreed U.S.-Iran framework deal. According to sources familiar with the negotiations, more than half of the fund has already secured commitments from private investors across the United States, Gulf countries, Asia, South America, and Africa. The initiative is intended to encourage both sides to finalize a broader agreement to end the conflict and restore economic stability.

The fund, expected to be called the Reconstruction and Development Fund, will focus on investments in energy, logistics, manufacturing, transport, and infrastructure. Unlike a compensation or aid package, it will consist entirely of private capital and will not include government funding or grants. The proposal emerged after Iran’s request for war-damage compensation was rejected, leading negotiators to explore alternative mechanisms to support reconstruction and attract foreign investment.

The investment vehicle will remain inactive until a final agreement is reached, with a 60-day memorandum of understanding expected to guide planning and project development. During this period, fund administrators, investors, and Iranian officials will identify priority projects, including the rebuilding of industrial facilities, refineries, airports, and other infrastructure damaged during the conflict. The fund is separate from ongoing discussions regarding sanctions relief and the release of frozen Iranian assets.

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