A $300 billion private investment fund aimed at attracting capital to Iran is included in the framework of a US–Iran agreement to end the war, according to a source with direct knowledge of the negotiations who spoke to Reuters. More than half of the amount has reportedly already been secured by private companies and investors.

The fund is designed to create economic incentives for both sides to reach a final agreement to end the conflict. The same source, who requested anonymity as the plan has not yet been officially announced, said the agreement is expected to be signed on Friday.

Although the existence of the fund had been previously reported, Reuters reveals for the first time that more than $150 billion in capital has already been committed, and that all funding will come exclusively from the private sector.

US and Iranian officials (with US President Donald Trump mentioned prominently) announced on Sunday that they had reached a framework agreement to end the war that began when US and Israeli forces attacked Iran on February 28. The agreement also includes the lifting of the US blockade on Iran and the reopening of the Strait of Hormuz, one of the world’s most important oil and gas shipping routes.

Not a compensation program

According to the source, the new investment structure is not a compensation or state-led reconstruction program and will not include public funds, government aid, or subsidies. Instead, it is a private investment vehicle financed entirely by private capital.

Companies from the United States, Gulf Arab states, Asia, South America, and Africa have reportedly already agreed to participate. Proposed investments cover sectors such as energy, transport, industrial production, and logistics.

A senior Iranian source told Reuters that Tehran had initially demanded $400 billion in compensation for war damages. Washington, however, rejected the request, which led to the idea of creating the investment fund instead.

The new structure, called the “Reconstruction and Development Fund,” would involve regional countries through loans, credit lines, or direct project financing for reconstruction.

Reconstruction of energy facilities and infrastructure

Projects expected to be funded include the restoration of damaged infrastructure such as the Mobarakeh Steel complex, refineries, airports, and other critical facilities affected by the fighting.

Despite its large economy, Iran has attracted limited foreign direct investment over the past four decades due to US and international sanctions that have effectively cut it off from global capital markets.

The country holds the world’s second-largest proven natural gas reserves and the fourth-largest oil reserves, with a population of over 92 million. It also has strong potential in petrochemicals, mining, tourism, and agriculture.

The source clarified that the investment fund is separate from parallel negotiations on lifting sanctions and unfreezing Iranian assets abroad, describing them as two distinct financial mechanisms with different goals and timelines.

The fund will not be established or activated until a final agreement is reached. A memorandum of understanding to be signed will define the next 60-day process, during which fund managers will work with Iranian authorities and investors to design and develop projects.

The Iranian Foreign Ministry and Pakistan’s Foreign Ministry, which reportedly helped mediate the agreement, did not immediately respond to requests for comment.

The White House referred to remarks by US Vice President JD Vance on CBS, in which he said Iran could gain access to a $300 billion reconstruction fund backed by Gulf states if it complies with Washington’s conditions. These include dismantling its nuclear program, eliminating enriched material stockpiles, and accepting strict inspection mechanisms.

The source did not disclose who would manage the fund or its governance structure, noting that details are still under negotiation. However, companies from South Korea, Japan, Singapore, Malaysia, and the United States have reportedly already expressed interest and made financial commitments, though a full list of participants was not provided.