US Vice President JD Vance on Monday said Iran “could have access” to a $300 billion reconstruction fund after the two nations reached an initial agreement on Monday to extend the fragile ceasefire and end the over three-month-old conflict in the region.
Diplomatic logistics and energy security
Details of the deal have not been released till now, but reports suggest it won’t be implemented till the agreement is signed, which is scheduled for Friday in Geneva, Switzerland, mediator Pakistan said.
The agreement is poised to reopen the Strait of Hormuz, but it will still take months for the global energy crisis to ease that was caused by the closure of the crucial waterway.
Conditions and Regional Compliance
Vance, during an interview with CBS News, said Tehran could get access to a $300 billion reconstruction fund which is supposed to be funded by the Gulf nations, though the Islamic Republic must meet certain obligations to fulfil the conditions in order to access the fund.
“That’s the sort of thing they could have access to, funded by the Gulf Coast coalition, so long as they honor their end of the obligation,” Vance told CBS News.
The US Vice President added “hardliners in the Iranian system” would overemphasize the benefits which the country gets, while underemphasizing all the things that they have to concede so that Tehran becomes eligible for those benefits.
Historical precedents and asset criticism
US President Donald Trump’s critics remain sensitive to Washington granting access to additional money to Tehran as part of the truce.
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Former President Barack Obama’s administration unfroze Iranian assets as part of its deal in 2015, but the administration received widespread criticism after it was alleged that it was helping to fund Iran’s proxies in the region, CNN reported.
Allocation plans and sanction relief
Iran’s state-linked news agency Mehr reported earlier that US and its allies would pay Tehran for the reconstruction fund. The money, if the Islamic Republic receives, would reportedly be used in restoring the damaged infratsurcture and reviving the country’s economy among others.
Mentioning about unfreezing Iranian assets, Vance said, “We’re willing to talk about unfreezing assets. But a much bigger deal is unsanctioning their economy so long as they make the long-term commitments on the nuclear program.”
