Iran deal includes USD300bn fund, more than half of which already committed

DUBAI: A USD300 billion private fund designed to trigger investment into Iran is outlined in the US-Iran framework agreement and more than half that sum has already been committed, a source with direct knowledge of the deal told Reuters.

The fund is designed to give both sides an economic incentive to conclude a final deal, said the source, who spoke on condition of anonymity because the plan has not yet been announced as Washington and Tehran prepare to sign on Friday.

US and Iranian officials said on Sunday they had agreed on a framework to end their war, which began when US and Israeli forces attacked Iran on February 28, halt the US blockade of Iran and reopen the Strait of Hormuz, a key supply route for global oil and gas.

The new fund is a private investment vehicle, not a reconstruction or reparations program and will not include any government money or grants, the source said, adding that companies based in the US, the Gulf Arab states, Asia, South America and Africa have agreed to commit financing.