A $300 billion private fund designed to support investments in Iran is included in the framework of Tehran-Washington agreement.

According to a source familiar with the agreement at Reuters, more than half of the funds have already been committed.

The fund aims to offer both sides financial incentives to reach a final agreement to end the war, explained the source, who wished to remain anonymous as this plan has not been officially announced.

The fund’s existence was known, but Reuters is revealing for the first time that more than half of the amount has already been committed and that it will be financed entirely by private capital.

This fund is a private investment vehicle, not a reconstruction or compensation program, and will not include government money or grants, the source said, adding that companies based in the U.S., the Arab Gulf states, Asia, South America, and Africa have agreed to commit to funding.

The investments for which commitments have been made concern sectors such as energy, logistics, manufacturing, and transportation, the source said.

A senior Iranian source told Reuters that Tehran had initially requested $400 billion in war reparations from the U.S., but Washington had stated that it would not provide it. That is when the idea for the fund was conceived; it will be called the Reconstruction and Development Fund.

The mechanism provides for countries in the region to contribute in various ways, the Iranian source noted. Among these are the provision of loans, the creation of credit lines, or the direct financing of the reconstruction of infrastructure damaged during the war, including facilities such as the Mobarakeh steel complex, oil refineries, and airports.

Iran, one of the largest economies in the Middle East, has attracted almost no foreign direct investment over the past four decades due to international and U.S. sanctions.

Proven natural gas and oil reserves

The country has the second-largest proven natural gas reserves and the fourth-largest proven oil reserves. It also has a young, educated population of over 92 million, a diversified industrial base, and significant untapped potential in sectors ranging from petrochemicals and mining to tourism and agriculture.

The investment fund will not be established or become operational until a final and satisfactory agreement is reached. Once the U.S.-Iran memorandum of understanding is signed, a negotiation process is expected to follow that is projected to last 60 days.

“It will be established as soon as the final agreement is signed,” the source said. “During those 60 days, the fund’s managers will work with Iranians and investors to plan the projects.”

Iran and Pakistan, which mediated the signing of the memorandum of understanding, have not yet commented on the reports.

A White House spokesperson referred to an interview given by U.S. Vice President Jay D. Vance on Monday, in which he stated that Iran could gain access to a $300 billion reconstruction fund backed by the Gulf states, if it reaches an agreement with Washington.

The source did not specify who would manage the fund or how, noting that the key details have not yet been finalized.