Washington:
US Vice President JD Vance has shut down reports claiming the United States is giving $300 billion to Iran as part of a reconstruction fund under their interim trade deal. Vance said that, instead, Washington plans to allow other countries to invest in Iran if it adheres to the terms of the US-Iran deal.
The clarification came as reports claimed that Iran could have access to a $300 billion reconstruction fund as part of the peace agreement brokered by President Donald Trump’s administration.
When confronted about the fund by Megyn Kelly on “The Megyn Kelly Show”, Vance explained that under the deal, if Iran adheres to the terms of the deal, it will lift sanctions on the Islamic Republic to encourage investment in the country, enabling cash flow.
JD Vance on the Iran peace deal:
Let’s say, for example, that the United Arab Emirates, who’s been one of the best allies that we’ve had in the region.
Let’s say that they want to invest in a nuclear power plant in Iran. They really can’t do that without us lifting some of the… pic.twitter.com/d5QesAExpN
— Clash Report (@clashreport) June 16, 2026
“Let’s say, for example, that the United Arab Emirates, who’s been one of the best allies that we’ve had in the region. Let’s say that they want to invest in a nuclear power plant in Iran. They really can’t do that without us lifting some of the sanctions that exist in the global financial system to make that possible,” Vance said.
“Now, are the Emiratis going to invest in Iran, or is America going to let the Emiratis invest in Iran? Unless the Iranians change their behaviour? No. So all these people say, “Well, you know, you’re giving Iran money.” No, no, no. We’re saying that if the Iranians change their behaviour, we’re going to let some of these other countries invest in rebuilding their country and creating some prosperity for their people,” he added.
The $300 Billion Investment Fund
Earlier, news agency Reuters reported that a $300 billion private fund designed to trigger investment into Iran is outlined in the US-Iran framework agreement. Citing a source with direct knowledge of the deal, the report also claimed that more than half that sum has already been committed.
The fund is designed to give both sides an economic incentive to conclude a final deal, a source told the agency on condition of anonymity because the plan has not yet been announced.
They said that the new fund is a private investment vehicle, not a reconstruction or reparations programme, and will not include any government money or grants, and companies based in the US, the Gulf Arab states, Asia, South America and Africa have agreed to commit financing.
Investments pledged span energy, logistics, manufacturing and transport, the source said.
The idea for the fund, which is to be named the Reconstruction and Development Fund, had then emerged.
The mechanism envisages regional countries contributing in various ways, an Iranian source said. These include securing loans, establishing credit lines or directly financing the reconstruction of sites damaged in the war, including facilities such as the Mobarakeh Steel complex, refineries, airports and, more broadly, infrastructure affected by the conflict.
US and Iranian officials said on Sunday they had agreed on a framework to end their war, which began when the US and Israeli forces attacked Iran on February 28, and halt the US blockade of Iran and reopen the Strait of Hormuz, a key supply route for global oil and gas.
How The Fund Will Help Iran
A senior Iranian source told Reuters that Tehran had originally sought $400 billion as compensation for war damages from the US, but Washington had said it would not provide it.
Iran, one of the Middle East’s largest economies, has attracted almost no significant foreign direct investment in the past four decades, frozen out of global capital markets by successive waves of US and international sanctions. The country has the world’s second-largest proven natural gas reserves and the fourth-largest proven oil reserves.
It also has a young, educated population of more than 92 million people, a diversified industrial base and significant untapped potential in sectors ranging from petrochemicals and mining to tourism and agriculture.
Terms Of The Deal
The investment fund is entirely separate from a parallel negotiating track over the lifting of US sanctions and the release of Iranian sovereign assets frozen abroad, the source said, describing the two as distinct financial mechanisms with different purposes and timelines.
The fund will not be created or become operational until a final and satisfactory deal is concluded. The memorandum of understanding, once signed, is intended to structure the process over the next 60 days.
“It’ll only be created once the final deal is signed,” the source said. “During these 60 days the fund administrators will work with Iranians and investors to plan and scope projects.”
