A US$300 billion reconstruction fund for Iran has emerged as a flashpoint in a newly reached ceasefire agreement between Washington and Tehran, raising fresh questions over who will ultimately bear the cost.
Outlined in a 14-point memorandum of understanding (MOU) signed by the United States and Iran after more than 100 days of conflict, the fund commits Washington to work with regional partners on Iran’s reconstruction and economic recovery.
Yet, the agreement offers no details on how contributions will be allocated.
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US President Donald Trump moved quickly to distance Washington from direct financial responsibility.
Speaking on Wednesday about the MOU at the Palace of Versailles outside Paris during the Group of Seven summit, Trump said the US would not invest in the fund and dismissed reports that it had pressured Gulf states to contribute.
His remarks appeared to contradict comments by US Vice-President J.D. Vance, who told CBS on Monday that Iran could gain access to a reconstruction fund backed by what he called a “Gulf coast coalition”, provided Tehran met its obligations under the deal.