A US-Iran memorandum expected to be formally signed in Switzerland on Friday could pave the way for the establishment of a $300 billion investment fund for Iran, as part of a deal to end the war that triggered a global energy crisis. US Vice President JD Vance told CBS News that financial incentives will be tied to Iran's fulfillment of its obligations under the agreement.
President Donald Trump previously criticized the 2015 nuclear deal for providing economic benefits to Tehran. On Truth Social, Trump declared the story that the US is paying Iran $300 million is 'fake news.' Vance also stressed the money is not a payment for Iran's enriched uranium. 'When people talk about billions of dollars in assets being released, that's not correct,' he said. 'What is correct is that Iran will have a better future if it meets its obligations.'
Vance said the agreement 'basically extends a hand to Iran, saying if you are willing to honor your obligations, allow inspections of the nuclear program, we will welcome you back into the world economy.' The investment fund is reportedly financed by a Gulf coalition, not the US government, and is designed for companies wanting to invest in Iran. According to The New York Times, sources say the fund will not come from the government but from businesses.
Expert Muhanad Seloom described this as a 'no lose' solution for Washington. 'If Iran reforms, the US administration gets the credit for peace; if not, the US loses nothing and the Gulf takes the risk.' The investment fund is structured to avoid directly unfreezing Iran's frozen assets, which stand at over $100 billion. Iranian media reported a 14-point memorandum could unfreeze $24 billion in frozen assets, but Vance denied that figure is in the text. For Iran, where the war caused $29 billion in damages and inflation is at its highest since 1942, the fund could be a lifeline, but it raises 'dignity issues' as Tehran sees it as conditional money.
The memorandum extends the ceasefire for another 60 days, during which both sides will negotiate the handling of Iran's stockpile of over 440 kg of enriched uranium. Vance stated Tehran has agreed to give up the stockpile, accept periodic inspections, and not build nuclear weapons, though the full text of the deal has not been released. The reopening of the Strait of Hormuz is also a contentious point, with some technical issues unresolved.
Reactions to the deal have been mixed. Iranian Foreign Minister Abbas Araghchi said the agreement brings economic benefits but Tehran is not entirely dependent on it. Iran's new Supreme Leader, Mojtaba Khamenei, has not commented. Some Iranians opposed the timing of the announcement, which coincided with Trump's birthday. Iranian President Masoud Pezeshkian said the Supreme National Security Council approved the deal to 'test the true commitment of the United States.'
At the G7 summit in France, Trump described the agreement as 'fair' and 'good,' adding that Iran cannot have nuclear weapons or 'they will be blown to pieces.' Qatar's Emir Sheikh Tamim bin Hamad Al Thani said the deal will bring positive results for the region. US Democratic lawmakers welcomed the ceasefire but demanded the terms be made public. Republican Senator Lindsey Graham expressed concern that Iran's view differs from what the US negotiating team claims. Expert Seloom concluded that both sides 'are talking about each other, speaking to domestic audiences, each having to sell the agreement as a victory.'
