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Donald Trump has said the US would not invest in a $300bn fund floated for Iran, and has not pressured Gulf states to contribute, following a backlash over reports of a potential agreement to help finance the Islamic republic’s reconstruction.
Speaking at the G7 summit in France on Wednesday, the US president said reports that such a fund would form a central pillar of a deal struck between Washington and Tehran last weekend were “false”.
“We’re not putting up 10 cents,” Trump said, adding that “we are not investing in it and we do not have a fund.”
He also denied that he had asked Gulf countries to create one.
This week, a US official said that Washington had discussed the possibility of sanctions relief and “a big $300bn fund to rebuild” if Iran agreed to a final settlement to end the war, including a nuclear deal.
The official was speaking after the US and Iran agreed to an interim accord that would extend an April 8 ceasefire by 60 days, reopen the Strait of Hormuz and lay the framework for nuclear talks.
Those discussions are supposed to begin after the memorandum of understanding is formally signed in Switzerland on Friday.
A person briefed on the talks said the establishment of the fund would be contingent on a final settlement, including a deal on Iran’s nuclear programme. They added the funding would not come from governments and instead would be created for companies keen to invest in the nation of 90mn with abundant energy resources. The person said it could include investment from European, Asian and US companies.
The structure and management of the fund were not immediately clear.
When US vice-president JD Vance was asked on Monday if a proposal for a $300bn fund was “true or false”, he said: “That’s the sort of thing they could have access to, funded by the Gulf Coast coalition, so long as they honour their end of the obligations.
“We absolutely are open to the Gulf Coast countries investing in the reconstruction in Iran, but only if Iran ends their nuclear programme, ends their enriched stockpile of material,” he told CBS News.
Trump’s remarks are likely to deepen confusion about the deal, which is set to be signed in Switzerland on Friday. The US has not published the memorandum of understanding since it was agreed late on Sunday.
The US president’s denial comes after reports of an investment fund for Iran provoked fierce bipartisan backlash.
Members of Trump’s own party have expressed deep scepticism about the deal, including the reported $300bn fund. Republican Senator Lindsey Graham, a vocal supporter of the war, has sharply criticised the establishment of a reconstruction fund.
“The idea of a $300bn reconstruction fund, given who is in charge of Iran, seems to be tone deaf,” he noted on social media. “It would be akin to a Marshall Plan for Germany with the Nazis still in charge.”
Gulf states could also be reluctant to make any commitment to invest in Iran after they bore the brunt of the Islamic regime’s retaliation to the US-Israeli war.
After the US and Israel launched the conflict on February 28, Iran fired barrages of missiles and drones at Gulf states, targeting US bases, energy facilities and other civilian infrastructure.
Their oil and gas exports, as well as trade, were also severely disrupted after Iran in effect closed the Strait of Hormuz during the more than 100-day conflict.
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