A memorandum of understanding (MOU) between the United States and Iran includes a plan to establish a $300 billion private fund for Iran's reconstruction, with reports indicating that over half of the total amount has already been pledged.
According to Reuters on June 16, the MOU outlines the creation of this fund, with sources familiar with the agreement stating that more than half of the funding has been committed.
The Financial Times had previously reported that during negotiations for the MOU, discussions included easing sanctions on Iran alongside the establishment of the $300 billion reconstruction fund. The report highlighted interest from companies in Asia, Europe, and the United States, including South Korea. A source familiar with the negotiations noted, "Many European companies, as well as firms from Asia, including South Korea and Japan, are showing interest. If sanctions are lifted, this fund could grow significantly."
Reuters further detailed that U.S. and companies from Asia, the Middle East, South America, and Africa have agreed to fund over $150 billion. Companies from South Korea, Japan, Singapore, Malaysia, and the United States are among those mentioned as having pledged contributions, although the complete list remains undisclosed.
Sources indicated that this fund is not a typical reconstruction or compensation program but rather a "private investment vehicle." President Donald Trump also clarified that the U.S. will not immediately provide funds to Iran, dismissing reports about potential U.S. investments in Iran as "ridiculous."
Investment areas include energy, logistics, manufacturing, and transportation. Reuters explained that the fund operates independently of negotiations regarding the lifting of U.S. sanctions or the release of frozen assets.
However, the fund will not be established immediately. Sources stated, "The fund will only be created after the final agreement is signed, and for the next 60 days, fund managers will work with Iran and investors to outline the scope and detailed plans for projects."
The fund's proposal also serves as an economic incentive for both the U.S. and Iran to reach a final agreement. Iran initially demanded $400 billion from the U.S. as compensation for war damages, but as the U.S. rejected direct compensation, the private investment fund approach emerged as an alternative.
Iran to Allow Oil Exports
Separately, Iran is expected to receive some sanctions relief regarding oil exports shortly after signing the MOU on June 19. A Trump administration official told Axios that the agreement includes a temporary sanctions waiver allowing Iran to sell oil while subsequent negotiations continue.
The Wall Street Journal also reported, citing sources, that the U.S. plans to waive existing sanctions to permit the export of Iranian crude oil and petroleum products immediately after the MOU is formally signed. The waiver is expected to cover not only oil sales but also related services such as financial transactions, maritime transport, and insurance.
However, the U.S. has made it clear that any economic benefits for Iran are contingent upon "performance-based compensation." Iran must comply with agreements regarding nuclear disarmament, uranium enrichment, and ensuring freedom of navigation in the Strait of Hormuz to receive the benefits outlined in the MOU.
U.S. Vice President JD Vance emphasized in a Fox News interview that "if Iran does not act properly, it will not be able to enjoy any benefits from this agreement."
The official signing ceremony is scheduled for June 19 in Bürglen, Nidwalden, Switzerland. Bürglen is an Alpine resort overlooking Lake Lucerne and has hosted major international events, including the 2024 Ukraine peace conference.
* This article has been translated by AI.
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