US-Iran peace deal framework: Who will pay $300 billion to help rebuild war-hit Tehran?

Here's a "billion-dollar" question: Who pays $300 billion to help Iran rebuild and reconstruct following mass destruction due to the intense US and Israeli-led bombing campaign?

After US President Donald Trump dismissed reports about the US "paying Iran 300 million Dollars" as "Fake News," Reuters claimed on Tuesday that the US-Iran deal to end months-long war includes $300 billion fund, more than half of which is already committed.

A leaked draft of the 14-point agreement, the full text of which was published by the Time magazine, indicated that Tehran, providing it meets commitments related to its nuclear program in further negotiations down the line, may be able to tap into a $300 billion development fund.

As per the report, the sixth point in the agreement read, "The United States undertakes, together with its regional partners, to create a comprehensive plan agreed upon by both parties for the rehabilitation and economic development of the Islamic Republic of Iran, while ensuring financing of at least $300 billion. The implementation mechanism of this plan, as part of the final agreement, will be formulated within 60 days."

The agreement between the US and Iran will be signed Friday.

But several reports and US Vice President JD Vance suggested that the proposed $300 billion fund under consideration by the Trump administration for Iran would be financed by private companies looking to invest in the country.

The administration emphasised that this money wouldn’t come from US taxpayers, CNN reported. Instead, it would be money from other Gulf countries that would only be available if Iran complies with a peace deal.

JD Vance recently spilt some tea over reports suggesting a possible reconstruction fund worth as much as $300 billion to Iran as part of the deal.

The vice president made clear that the funds meant for Iran’s reconstruction will only be paid upon Iran meeting certain requirements.

He hinted at conditional and possible investments from the very Gulf states Iran targeted with drones and missiles throughout the war.

Vance told CBS News on Monday the $300 billion reconstruction fund was “the sort of thing they [Iran] could have access to, funded by the Gulf Coast Coalition, so long as they honour their end of the obligation.”

"...we absolutely are open to the Gulf Coast countries investing in the reconstruction of Iran, but only if Iran ends their nuclear program, ends their enriched stockpile of material, and is really open to inspections and enforcement regime that gives the American people confidence they're never going to have a nuclear weapon," Vance told CBS News.

Vance said late Monday on Fox News that “we would invite other countries — not us, but other countries — to invest in” Iran.

“Iranians don’t get a dime unless they behave and change their behavior” and will “never get a dime of American taxpayer money. Ever. Full stop. Not even close,” Vance said.

He reportedly said the US wouldn’t let the United Arab Emirates, for example, “invest in Iran, unless the Iranians change their behaviour.”

It cited sources as saying that the fund is designed to give both sides an economic incentive to conclude a final deal to end the war.

Reuters also revealed for the first time that more than half of the amount has already been committed and that it will be comprised entirely of private-sector funds.

"The new fund is a private investment vehicle, not a reconstruction or reparations programme and will not include any government money or grants," the source told Reuters.

They added that 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, then emerged.

"The mechanism envisages regional countries contributing in various ways," the 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.

"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 was quoted as saying.

"It'll only be created once the final deal is signed," the source told Reuters. "During these 60 days the fund administrators will work with Iranians and investors to plan and scope projects," they added.