What's the point of investing $300 billion in Iran?

A clause in the preliminary agreement between the US and Iran states: "The United States and its Middle Eastern partners will develop a concrete plan with at least $300 billion in funding for the reconstruction and economic development of the Islamic Republic of Iran." This is seen as a reconstruction and economic development fund aimed at encouraging Iran to abandon its nuclear weapons program. However, what concerns the public more is who will contribute to this massive investment package and for what reason?

Báo Cần Thơ•20/06/2026

Iran says the US and Israeli airstrikes have cost its economy hundreds of billions of dollars. Photo: Getty Images

Compensation for war losses?

President Donald Trump and Vice President JD Vance both asserted that Washington did not contribute a single penny of American taxpayers' money to the reconstruction fund. The US government's non-contribution to this fund is understandable, as it is a politically sensitive issue in an unpopular war. During negotiations, Iran reportedly offered $400 billion in war damages, which the US refused, and this fund is considered a form of "compensation."

Currently, more than half of the funds have been pledged, coming from companies based in the US, Gulf states, Asia, South America, and Africa. In Asia, the identified companies are from South Korea, Japan, Singapore, and Malaysia. The pledged investments span the energy, logistics, manufacturing, and transportation sectors. Sources from Iran indicate that the mechanism for contributing to the fund will be implemented in various ways, including guaranteeing loans, establishing credit lines, or directly financing the reconstruction of war-damaged sites, such as the Mobarakeh steel complex, oil refineries, airports, and other infrastructure.

The Islamic Republic of Iran possesses the world's second-largest proven natural gas reserves and the fourth-largest oil reserves. This nation of over 92 million people also boasts a young, highly educated population, a diverse industrial base, and untapped potential in sectors ranging from petrochemicals and mining to tourism and agriculture .

You may also like

Russia has temporarily closed some railway crossings with Finland, Estonia, and Latvia.On June 30, the Russian government decided to temporarily suspend operations at seven of the nine railway crossings on its borders with Finland, Estonia, and Latvia, according to a decree signed by Prime Minister Mikhail Mishustin.

Venezuela: Subway resumes service after earthquake.(HTV) - The subway system in Venezuela's capital, Caracas, resumed operation on all lines on June 30, a day after temporarily suspending service as a precaution against aftershocks from a 5.2 magnitude earthquake.

Oil prices edged higher amid concerns over Middle East peace talks.Oil prices edged higher in Asian trading on the afternoon of July 1st, amid concerns that a breakdown in peace talks between Iran and the US could lead to prolonged supply disruptions in the Middle East, a key oil-producing region.

In reality, despite being one of the largest economies in the Middle East, Iran has attracted virtually no significant foreign direct investment over the past four decades, being shut out of global capital markets by US and international sanctions. Iranian national assets abroad are also frozen. Against this backdrop, the US-Israeli air campaign, which began on February 28th, alone inflicted significant damage to Iran's infrastructure. In a preliminary assessment in mid-April, Tehran stated that the US and Israeli airstrikes had cost the Iranian economy $270 billion, equivalent to approximately 57% of its GDP.

Opportunities for economic integration

Arman Mahmoudian, an expert on international relations at the Institute for National and Global Security at the University of South Florida (USA), believes that investing in Iran is a way to encourage the country's economic integration and financial dependence on external sources, thereby forcing it to maintain more peaceful and stable relations with countries in the region. "By investing in Iran and becoming a more valuable economic partner, Arab nations can hope to minimize the possibility of being targeted by Tehran," Mahmoudian stated.

Nevertheless, Arab nations remain hesitant to publicly contribute to the fund, despite the US's commitment to developing an implementation plan on their behalf. Meanwhile, although not directly investing, the US plays a crucial role in the implementation of the reconstruction fund. The mechanism for implementing this plan will be finalized as part of the final agreement within 60 days. After that, all necessary permits and exemptions for related financial transactions will be decided by the US.

In a statement on June 18, Vice President JD Vance cited a specific example of the US role: The United Arab Emirates (UAE) wants to invest in building a power plant in Iran, but this is currently impossible due to US sanctions. “What we are saying is that if Iran behaves properly (according to the agreement) and if the UAE wants to build the power plant, then we will ease the sanctions necessary to make that possible,” Vance stated.

In the long term, regional investors hope that if Iran truly abandons its nuclear weapons development ambitions, the US will push for a UN Security Council resolution to lift international sanctions against Iran, allowing countries more freedom to choose to invest in Iran according to their needs.

United States - Vietnam: Don't miss

Vietnam encourages US businesses to expand investment in high technology.On the morning of June 26th, at the Government Headquarters, Deputy Prime Minister Ho Quoc Dung received Mr. Jeff Place, Supply Chain Director of Coherent Group (USA). During the meeting, the Deputy Prime Minister affirmed that Vietnam encourages US businesses to expand investment, especially in high-tech, innovation, and semiconductor industries.

Encourage U.S. businesses to expand investment in high-tech sectors.Deputy Prime Minister Ho Quoc Dung said that Vietnam welcomes US businesses to continue expanding their operations in Vietnam, especially in high-tech industries and sectors with high added value.