US mulling $300 billion fund for Iran – report

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President Trump appears to deny report that his administration is considering setting up massive investment fund for Iran if it upholds deal.By World Israel News StaffThe Trump administration is mulling the creation of a $300 billion investment fund for Iran if Tehran upholds an emerging ceasefire agreement and accepts a final nuclear deal, according to reports published as Washington and Tehran prepare for another round of negotiations.The Financial Times reported Monday that the fund would be intended to attract private investment into Iran, including in the country’s energy sector, if sanctions are lifted under a final settlement.The report said the plan would be tied to Iran’s compliance with a memorandum of understanding expected to be formally signed in Switzerland on Friday.A person briefed on the talks told the FT that the fund would not be a direct government payout, but a mechanism to draw companies into postwar investment in Iran.“There is interest from a lot of businesses in Europe, a lot in Asia, South Korea, Japan, etc., and American companies and businesses as well,” the person said. “If the sanctions are lifted, this fund would be a significant amount, and it will be huge.”Vice President JD Vance also said Iran could gain access to economic benefits only if it meets its obligations.Vance told CBS News that the fund would be “the sort of thing [Iran] could have access to . . . so long as they honor their end of the obligation.”The reported fund has become one of the most politically sensitive elements of the emerging US-Iran arrangement.President Donald Trump has repeatedly criticized former President Barack Obama’s 2015 nuclear deal with Iran, accusing the Obama administration of sending “pallets of cash” to Tehran.Critics of the current framework say the new proposal could create far larger financial benefits for Iran if the agreement moves forward.Trump denied on Tuesday that the US had agreed to pay Iran unconditionally.“Iran has agreed to never have a Nuclear Weapon! Also, the story that the U.S. is paying Iran 300 million Dollars is Fake News, put out by the Dumocrats!!! President DJT,” Trump wrote on Truth Social.The figure in Trump’s post appeared to refer to reports about a $300 billion fund, though he wrote “300 million Dollars.”Trump adviser Alex Bruesewitz also pushed back on criticism of the proposal, saying the fund had been mischaracterized.“The narrative about a supposed $300 billion ‘Iran investment fund’ is being deliberately distorted by grifters to generate clicks and controversy,” Bruesewitz wrote on X. “In reality, this is not an unconditional handout. It is a conditional incentive or, in simpler terms, a ‘carrot.’”He said Iran would first have to take major steps before any such fund could move forward.“Under this approach, Iran would first have to fully dismantle its nuclear program, completely end its support for terrorist groups, and carry out meaningful internal reforms. Only then would the United States help organize a group of investors to pursue commercially attractive opportunities in Iran,” Bruesewitz wrote.“The aim would be to create deep economic ties and mutual interdependence that make future conflict far more costly for all sides and demonstrate that choosing peace delivers greater long-term benefits than continuing to back terrorism,” he added.Bruesewitz also attacked critics of the proposal, writing, “The only people who could possibly oppose this plan are those who are either financially benefiting from prolonged conflict or are individuals of severely low intelligence… or perhaps both.”The administration has said any sanctions relief or financial benefit would be conditional.One official separately rejected Iranian claims that Tehran would receive billions of dollars in frozen funds before final negotiations begin.“This is completely not true,” the official told Axios. “This is a pay-for-performance deal and no frozen funds will be released without the Iranians implementing their commitments.”The emerging arrangement is part of a broader memorandum of understanding intended to extend the ceasefire, reopen the Strait of Hormuz and begin 60 days of negotiations toward a more detailed nuclear agreement.Axios reported that the MOU says any final deal would include a “definitive and mutually agreed plan” to establish a $300 billion fund for Iran’s “reconstruction and economic development,” along with a mechanism for implementing it.Vance has described the current document as brief and preliminary.“Yes, so the MOU is about a page and a half, so it is a very general document,” Vance said.He said the pact is meant to create a framework for further negotiations rather than resolve every technical issue immediately.“The MOU… is about a page and half so it is a very general document,” Vance told CNN. “On a number of issues, we are going to have to figure this stuff out during the technical negotiation phase.”The post US mulling $300 billion fund for Iran – report appeared first on World Israel News.