A $300 billion private fund aimed at spurring investment in Iran forms part of the US-Iran framework agreement, with more than half the amount already committed by private backers, according to a source with direct knowledge of the talks.

The vehicle is intended to create economic incentives for both parties to finalize an agreement ending the conflict, the source explained under condition of anonymity ahead of the planned signing on Friday.

While the fund concept had surfaced earlier, Reuters has learned that over half the total has been pledged and that it consists solely of private capital from firms in the United States, Gulf states, Asia, South America and Africa.

US and Iranian officials confirmed Sunday that the framework would halt fighting that erupted after US and Israeli strikes on Iran in February, lift the American blockade and reopen the Strait of Hormuz.

Officials stressed the fund operates purely as a commercial investment platform focused on energy, logistics, manufacturing and transport projects rather than any government-backed reconstruction effort.

Iran had pressed for larger reparations package

President Trump rejected any notion of US financial involvement on Wednesday, declaring that Washington would not contribute even a token amount and that Gulf nations were not being asked to participate either.

A White House spokeswoman referenced earlier remarks by Vice President JD Vance indicating Iran might access a Gulf-backed reconstruction pool upon compliance.

Tehran originally sought four hundred billion dollars in war damages but dropped the demand after Washington refused, leading instead to the creation of the private fund idea, an Iranian source said.

Limited foreign investment history in Iran

Iran possesses vast oil and gas reserves yet has drawn almost no meaningful foreign direct investment over four decades due to sanctions.

The fund remains separate from ongoing discussions about sanctions relief and the release of frozen Iranian assets abroad.

It will only become operational after a final accord is reached, with the coming sixty-day period devoted to project planning and scoping, the source added.