JD Vance says Iran could access $300 billion reconstruction fund if it meets US deal terms

At the heart of the deal to end the Middle East war lies a $300 billion fund to rebuild and develop Iran – but so far it is unclear who will foot the bill. Here’s what we know about the fund and its potential backers. What’s in the text? The memorandum of understanding (MoU) says Washington “undertakes with regional partners to develop a definitive mutually agreed plan with at least $300 billion for the reconstruction and economic development” of Iran. “The mechanism for the implementation of this plan will be finalised as part of a final deal within 60 days. All required licenses, waivers, and permissions needed for the relevant financial transactions will be granted by the United States of America,” it added. The text does not say who will contribute to the fund, which is only one of many economic incentives the Americans have dangled in front of Iran to encourage them to sign a definitive deal. The text also states the end of “all types of sanctions” on Iran upon the signing of a final deal, with Washington immediately issuing waivers allowing Tehran to sell oil. “I think the idea of mentioning this fund in the MoU is to show Iran all the carrots that are available if they abide by the MoU and show goodwill in negotiations moving forward,” said Anna Jacobs, a non-resident fellow at the Arab Gulf States Institute. US Vice President JD Vance said Iran would only get the rewards if it proves it has complied with the terms that will be hammered out in the 60-day period, which he said began on Thursday. Not a ‘dime’ from US taxpayers US hawks have lambasted the Trump administration for giving too many concessions to Iran, and have described the fund as a boon that will embolden its theocratic government. Influential senator Lindsey Graham compared the move, should the funds come from the West, to granting a Marshall Plan to Germany “with the Nazis still in charge” — in reference to the American aid package that helped rebuild Europe after World War II. Vance said Iran will “never get a dime” from American taxpayers under the deal. Experts and commentators say the regional nations mentioned in the text can be none other than Iran’s wealthy Gulf neighbours — targeted by Iranian drones and missiles during the war. Will the Gulf pay? Gulf countries, divided over Iran in the aftermath of the war, have not confirmed they would invest in the scheme to rebuild their powerful neighbour, which has sought war reparations from the United States. Iran desperately needs the funds, “so the hope is that the potential of greater investment longer term will help with further de-escalation”, Jacobs said. “But the question is whether trust can be restored to allow for that.” Asked about the fund last week, Saudi Foreign Minister Prince Faisal bin Farhan declined to comment on its details. But he said that after Iran’s Gulf attacks, “we’re going to have to have a conversation on how we rebuild that trust, how we rebuild that relationship before any concept of economic cooperation, mutual investment or anything like that can rationally be addressed”. Domestic investment is a priority for the kingdom, he added. For Saudi security analyst and researcher Hesham Alghannam, the kingdom’s vision “is based on a clear hierarchy of priorities: security first, followed by confidence-building through verifiable guarantees, and finally, a transition to broader levels of economic cooperation”. The UAE, which bore the brunt of Iran’s attacks, had repeatedly demanded Tehran pay reparations for the damage it caused — though it softened its tone in the weeks prior to the deal. The UAE was also one of the US-sanctioned Iran’s main trading partners, at least before the war. Investing in Iran’s economy could provide leverage for the Gulf — but it would need guarantees that the funds would not be used to rearm Tehran. Vance has been trying to reassure allies about the separate issue of Iran’s frozen assets — which the deal pledges to “make fully available”— saying they would not be used to “finance terrorism”. But the vice president said mediator Qatar, along with Trump’s son-in-law Jared Kushner, had come up with “a very interesting solution” for the frozen assets, with the US and Qatar having “approval over that process” of unlocking them. Instead, if any Iranian assets were unfrozen, they would “go to make American farmers richer and to feed the Iranian people”, Vance said, adding that the money would be used by Iran to buy American soybeans, corn and wheat.

Vice President JD Vance has said Iran could have access to the fund if it holds up its end of the peace agreement, noting the money would come from the Gulf Cooperation Council.

The fund is reportedly designed to give both sides an economic incentive to conclude a final deal. It's a private investment vehicle, not a reconstruction or reparations programme, and will not include any government money or grants

Vice President JD Vance defended the terms of a still-secret peace deal with Iran on Tuesday — telling "Fox & Friends" that a proposed $300 billion reconstruction fund paid for by Gulf Arab nations would not be available "unless they totally transform themselves."

The Trump administration’s plan to approve $300 billion in aid for reconstructing Iran has only become more confusing.Vice President JD Vance all but confirmed to CBS’s Ed O’Keefe Monday morning that the $300 billion was a real proposal in the Iran peace deal. Yet within hours—and after some monumental backlash from his party—Vance seemed to change his tune, telling Fox News’s Sean Hannity that Iran would not receive a “single dime” of U.S. money.“The agreement says they are not getting a single dime of American money, that’s just not what this is,” Vance said Monday night. “What the agreement does say, Sean, is again, if the Iranians behave, and if there are sanctions relief, and if the Iranians are integrated into the world economy, we would invite other countries—not us—but other countries to invest in their country.“That’s fine, but only if they comply with the terms of the agreement,” Vance added.Hannity: There’s a report that the Qataris are giving them $300 billion with the approval of the US. Did the U.S. Ever sign off on the Qatari paying them that money?Vance: No, the agreement says they are not getting a single dime of American money, that is just not what this… pic.twitter.com/qk024IvfLS— Acyn (@Acyn) June 16, 2026Vance did not elaborate on how the administration planned to manage or gatekeep foreign aid packages intended for Iran.The White House and Tehran have already signed a peace deal, though the exact specifications of the agreement have not yet been revealed (and are still being hashed out). The final draft reportedly proposes the immediate reopening of the Strait of Hormuz under Iran’s direction, a commitment from the U.S. not to interfere in Iranian affairs, and a reiteration of Iran’s commitment not to produce nuclear weapons, echoing language included in the 2015 Joint Comprehensive Plan of Action, according to a senior Iranian official who spoke with Reuters.The most contentious point of the plan, however, is a reported $300 billion reconstruction fund, as well as billions more in unfrozen Iranian assets and forfeited sanctions—which were originally understood to be provided at cost to U.S. taxpayers.Donald Trump similarly tried to cast doubt on the proposal Monday evening, claiming on Truth Social that “the story that the U.S. is paying Iran 300 million Dollars is Fake News, put out by the Dumocrats!!!”But not everyone in the administration is on the same page. Earlier that day, a U.S. official told reporters that the White House had “discussed the possibility of releasing frozen funds, sanctions relief, you know, a big $300 billion fund to rebuild their country, and all of these things are going to be tied to performance.”

Trump administration considers $300bn fund for Iran if deal is upheld  Financial TimesMiddle East crisis live: JD Vance claims nuclear inspectors will return to Iran as part of deal; Israel says its forces will remain in Lebanon ‘buffer zone’  The GuardianVance says Israeli PM Netanyahu 'has got some things wrong'  BBCVance: Iran ‘could have access to’ $300B reconstruction fund  The HillVance says 'a lot' of Iran deal details to figure out, but U.S. has 'all the cards'  CNBC