Who Will Pay USD 300 Billion to Iran for Recovery After War With US-Israel?

Here's a billion-dollar question - who pays USD 300 billion to help Iran rebuild after the intense US and Israeli-led bombing campaign that devastated the country?

After US President Donald Trump dismissed reports about the US paying Iran money as fake news, Reuters reported that the US-Iran deal to end the months-long war includes a USD 300 billion fund, more than half of which is already committed.

14-Point Draft Agreement Outlines Reconstruction Fund

A draft of the 14-point agreement indicated that Tehran, provided it meets commitments related to its nuclear programme in further negotiations, may be able to tap into a USD 300 billion development fund. The sixth point of the agreement states that the United States, along with regional partners, will develop a definitive plan worth at least USD 300 billion for Iran's reconstruction and economic development. The mechanism for implementing the plan would be finalised within 60 days as part of a final deal, with the US granting all required licenses, waivers and permissions for the relevant financial transactions. Mojtaba Khamenei Says Donald Trump Was ‘Desperate’, Used ‘All Kinds of Leverage’ To Secure Iran Deal.

Who Will Actually Foot the Bill?

The agreement does not specify whether the US alone will finance the fund or whether other nations will contribute. However, several reports and US Vice President JD Vance indicated that the money would come from private companies looking to invest in Iran rather than American taxpayers. Vance told CBS News the fund was something Iran "could have access to, funded by the Gulf Coast Coalition, so long as they honour their end of the obligation." He stressed that the US itself would not contribute and that other nations would only be invited to invest if Iran ends its nuclear programme, dismantles its enriched stockpile, and submits to a credible inspection and enforcement regime. ‘Iran’s Nuclear Program Has Been Completely Destroyed’: JD Vance Says Tehran Honouring Initial Peace Deal Commitments (Watch Video).

'Not a Dime' of US Taxpayer Money, Says Vance

Vance was blunt about where the money would not come from, saying Iranians will not "get a dime unless they behave and change their behaviour," adding that no American taxpayer funds would ever be involved.

A Private Investment Vehicle, Not Reparations

Reuters reported that the USD 300 billion fund outlined in the framework agreement is a private investment vehicle rather than a government reconstruction or reparations programme, and will not include any state money or grants. Companies from the US, Gulf Arab states, Asia, South America and Africa have reportedly already agreed to commit financing, with investments expected to span energy, logistics, manufacturing and transport.

How Regional Countries May Contribute

An Iranian source told Reuters that Tehran had initially sought USD 400 billion in compensation for war damages, but Washington declined to provide that sum, leading to the idea for what is being called the Reconstruction and Development Fund. According to the source, regional countries are expected to contribute through loans, credit lines, or direct financing for rebuilding war-damaged sites such as the Mobarakeh Steel complex, refineries, airports and other infrastructure. The fund is described as entirely separate from the parallel track of negotiations over lifting US sanctions and releasing Iran's frozen sovereign assets abroad.

When Will the Fund Be Set Up?

The fund will not be created or become operational until a final deal is signed. The source said it will only be created once the final agreement is in place, and that during the 60-day negotiating window, fund administrators will work with Iranian officials and investors to plan and scope out projects.

(The above story first appeared on LatestLY on Jun 19, 2026 07:48 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).