US‑Iran draft pact proposes $300 billion fund, ceasefire

A draft agreement between the United States and Iran proposes a framework for ending hostilities and includes a significant financial mechanism for Iran’s reconstruction, according to officials familiar with the negotiations. The memorandum of understanding, which has not received final approval from U.S. President Donald Trump, outlines terms for a ceasefire, sanctions relief, and a reported $300 billion international investment fund.

The proposed fund represents a central element of the talks. Iranian officials had earlier demanded reparations for wartime bombardment damage, which they estimate totals between $300 billion and $1 trillion. In the current draft, diplomats describe the sum as an international investment fund that the United States would help facilitate, deliberately avoiding terms like "reparations" or "compensation." This framing is seen as a diplomatic maneuver to navigate domestic political opposition in Washington. The idea has been attributed to Steve Witkoff, the U.S. Special Envoy to the Middle East, and Jared Kushner, the president’s son-in-law, with proposals including the stimulation of real estate projects in Tehran.