（Singapore, 17.06.2026）The United States and Iran are moving closer to a formal peace agreement that could unlock at least US$300 billion (S$384.81 billion) in investment for Iran, ease restrictions on its oil exports and pave the way for the release of frozen Iranian assets.
The two countries are expected to sign a memorandum of understanding in Switzerland on June 19, marking a major step toward ending months of conflict and opening a new chapter in their economic relationship.
At the heart of the agreement is a proposed US$300 billion Reconstruction and Development Fund that would channel investment into Iran’s economic recovery and infrastructure rebuilding. Reuters, citing a source with direct knowledge of the negotiations, reported that more than half of the planned funding has already been secured from private-sector investors.
The fund is designed to provide both sides with a strong economic incentive to reach a final agreement after years of tensions and months of warfare.
The conflict began in late February after US and Israeli forces launched attacks on Iran, leading to disruptions in regional trade and shipping, including traffic through the Strait of Hormuz, one of the world’s most important energy routes.
Private Capital to Drive Iran’s Economic Revival
Unlike a traditional aid package or war reparations programme, the proposed US$300 billion fund would be financed entirely by private-sector capital.
Sources involved in the discussions said investors from the United States, Gulf states, Asia, South America and Africa have already pledged support. The investments are expected to focus on sectors such as energy, logistics, manufacturing and transportation.
The fund emerged after Iran reportedly sought US$400 billion in compensation for war-related damages, a request that Washington rejected. Negotiators instead developed the idea of a large investment vehicle that could help rebuild the Iranian economy while attracting foreign capital.
Regional countries are expected to contribute through various mechanisms, including loans, credit facilities and direct project financing.
Potential projects include repairing and upgrading damaged industrial facilities, refineries, airports and other infrastructure affected by the conflict.
Iran has long been viewed as a market with significant untapped potential. Despite possessing the world’s second-largest natural gas reserves and fourth-largest oil reserves, the country has received little foreign investment over the past four decades due to extensive international sanctions.
With a population of more than 92 million people, a diversified industrial base and large domestic market, analysts say Iran could become an attractive destination for investors if sanctions are eventually eased.
However, officials stressed that the investment fund will only become operational if a final peace agreement is reached. The memorandum expected to be signed this week serves as a framework for negotiations over the next 60 days.
During that period, fund administrators and potential investors are expected to work with Iranian authorities to identify and develop investment projects.
Oil Exports and Frozen Assets Part of Broader Incentives
The proposed agreement offers Iran a range of immediate and longer-term economic benefits.
According to a draft version of the memorandum, the US Treasury Department would issue waivers allowing exports of Iranian crude oil, petrochemical products and related services shortly after the agreement is signed.
The United States would also lift its naval blockade, while both countries would work to restore shipping traffic through the Strait of Hormuz to pre-war levels within 30 days.
The deal also outlines a pathway for Iran to regain access to assets that have been frozen abroad for decades. While the draft states that these funds will eventually be released and made available to Iran, it does not provide a specific timeline.
Iran has been subject to various US sanctions since the 1979 Islamic Revolution. Estimates of Iranian government assets frozen overseas vary widely, ranging from tens of billions to more than US$100 billion.
US officials said the economic benefits outlined in the agreement would depend on Iran fulfilling its commitments, including maintaining that it will never pursue nuclear weapons and allowing freedom of navigation through the Strait of Hormuz.
The draft also calls for both sides to negotiate a final agreement within 60 days, with discussions expected to cover sanctions, regional security and Iran’s nuclear programme.
Political Challenges Remain
Despite the economic opportunities presented by the deal, significant political hurdles remain.
US President Donald Trump has described the agreement as effectively completed, saying it would prevent Iran from developing nuclear weapons while helping restore stability in the region.
However, some of Trump’s allies have expressed concerns that the proposed incentives may give Iran too much in exchange for uncertain commitments.
Critics have also questioned whether sanctions relief and access to investment funding should be offered before a final agreement is reached.
Another challenge involves regional security issues beyond Iran itself. The draft memorandum calls for an end to hostilities across all fronts, including Lebanon, a provision that could require support from other parties involved in the broader conflict.
Financial markets have reacted positively to the prospect of a deal. Oil prices have fallen sharply in recent days amid expectations that the reopening of the Strait of Hormuz could increase global energy supplies and reduce concerns about disruptions to oil shipments.
For investors, the proposed agreement represents a rare opportunity to gain access to one of the Middle East’s largest but most isolated economies.
Whether the ambitious US$300 billion investment plan ultimately materialises will depend on the success of negotiations over the coming weeks. But if a final agreement is reached, it could mark one of the most significant economic openings for Iran in decades and reshape investment flows across the region.
