Vice President JD Vance said Monday that Iran could eventually gain access to as much as $300 billion in reconstruction-related investment from Gulf nations that were attacked by Tehran during the recent war, provided the regime fulfills its commitments under a newly signed memorandum of understanding with the United States.
“That’s the sort of thing they could have access to, funded by the Gulf Coast Coalition, so long as they honor their end of the obligation,” Vance told CBS News on Monday, when asked whether the US-Iran memorandum of understanding electronically signed Sunday allowed for a “$300 billion reconstruction fund.”
Vance emphasized that any financial assistance aimed at rebuilding Iran would be contingent on Tehran meeting strict conditions. Nevertheless, skeptics remain unconvinced, noting that the agreement itself has not been made public and Iranian officials have not publicly acknowledged any requirements tied to the proposed funding.
“We absolutely are open to the Gulf Coast countries investing in the reconstruction of Iran, but only if Iran ends their nuclear program, ends their enriched stockpile of material, and is really open to an inspections and enforcement regime that gives the American people confidence they’re never going to have a nuclear weapon,” Vance said.
Appearing separately with Sean Hannity on Fox News, Vance reiterated that the money would remain off limits unless Tehran dramatically alters its conduct. He stressed that the “Iranians don’t get a dime unless they behave and change their behavior” and will “never get a dime of American taxpayer money. Ever. Full stop. Not even close.”
Among those voicing concern is Sen. Lindsey Graham, who questioned the wisdom of such a massive economic package. Writing on X last week, the South Carolina Republican argued that the “idea of a $300 billion reconstruction fund, given who is in charge of Iran, seems to be tone deaf. It would be akin to a Marshall Plan for Germany with the Nazis still in charge.”
Graham said Monday that he is waiting for the administration to publish the full agreement so lawmakers can evaluate it directly rather than relying on what he called “Iranian propaganda reports.”
At the same time, Graham indicated that if the administration’s description of the deal proves accurate, it could dramatically reshape the Middle East. He said that “the proposal as envisioned by the Vice President and the Trump Administration to end the Iranian conflict would be transformative for the region and a major achievement, leading to broader peace.”
The diplomatic effort follows months of hostilities that began after the United States and Israel launched military operations against Iran on Feb. 28. Tehran responded by targeting several Gulf nations hosting American military assets, including the UAE, Qatar, Jordan, Kuwait, and Saudi Arabia.
Although the agreement remains under wraps, officials say its immediate objective is to restore maritime commerce and regional stability by reopening the Strait of Hormuz and ending the American naval blockade. More complex negotiations involving Iran’s nuclear program are expected to follow.
The reconstruction proposal is only one element of the broader US-Iran understanding that was finalized electronically behind closed doors on Sunday.
According to a senior American official, Iran could also secure sanctions relief, regain access to frozen assets, and reconnect with the global economy if it demonstrates behavior consistent with what Washington considers that of a responsible nation.
“The more they behave like a normal country, the more that they show they’re willing to be a good partner, then we’re going to be willing to be extraordinarily generous in opening up their economy and opening up the sanctions relief that the deal contemplates,” the person said.
Officials said the agreement envisions a phased easing of sanctions, a gradual end to economic restrictions that currently cost Iran an estimated $14 billion each month, and access to frozen funds held abroad.
In return, the United States expects Tehran to satisfy undisclosed denuclearization benchmarks and potentially discontinue support for terrorist organizations such as Hamas and Hezbollah.
Should the arrangement move forward, Washington would also be relinquishing one of its most powerful tools against Tehran: extensive economic pressure.
“The blockade was incredibly effective towards causing financial stranglehold on them. Economic Fury was also incredibly effective on them, and we saw that all over,” the second official said, referring to the Treasury’s efforts to pressure Iran. “I think that led us to this dialog.”
Administration officials stressed that economic incentives would be released incrementally and only after Iran meets a series of benchmarks that remain confidential.
Because neither Washington nor Tehran has published the actual text of the agreement, speculation has exploded across political and media circles. Iranian outlets have highlighted what they portray as major gains for the Islamic Republic while largely ignoring potential concessions.
“There is a lot of misinformation out there,” the second official said. “… What you’re seeing now is that the hardliners on both sides — in the Iranian system that are protesting [the deal] and we have certain people in the American system who say there’s no deal you could ever do with Iran ever — are obviously making a lot of noise.
“But all the details of the agreement have not been put out yet,” the person added, noting that “technical discussions” with Iran will begin later this week.
Vance said the delay in publication is due to “diplomatic protocols” and repeated President Trump’s statement that the agreement is expected to be released by Friday.
Administration officials said the proposed reconstruction initiative would not involve direct cash transfers. Instead, Gulf nations would provide investment capital through infrastructure and development projects coordinated with US support.
However, Iran would not automatically receive those investments. Officials said Tehran must first become a viable destination for foreign capital by demonstrating long-term stability and compliance.
“That only happens if they make themselves investable, when they make themselves a country where you can really see that there’s not going to be snapback [sanctions for] pursuing a nuclear weapon or playing these games in the shadows,” a second official explained.
The official added that Iran would first have to make several undisclosed concessions before becoming eligible for the investment opportunities.
While Iranian state media has portrayed the proposal as reconstruction assistance, US officials insist the money would flow through investment ventures rather than direct aid.
“The hardliners in the Iranian system will overemphasize the benefits that Iran gets, while underemphasizing all the things that they have to concede, and all the things they have to provide, in order to get these benefits,” Vance said.
After more than three months of conflict and over two months of economic restrictions on its ports, Iran faces severe financial strain and is seeking quicker sources of relief, regional officials told The Post.
One potential avenue involves frozen assets held overseas. Unlike sanctions relief, which could take weeks or months to implement, releasing frozen funds could provide Tehran with immediate financial assistance.
US officials said those assets could potentially be unlocked as soon as Iran fulfills certain undisclosed requirements.
“We really do want to get to a place where we can unsanction a lot of the Iranian economy, where we can unfreeze these assets, but it requires Iran to do some of the things that they’re promising to do,” the first official said.
It remains unclear whether those benchmarks have already been defined, whether they will be finalized before Friday’s signing ceremony, or whether they will emerge from technical negotiations scheduled for later this week.
The memorandum also includes a US commitment to gradually end the maritime blockade that administration officials say has been costing Iran approximately $500 million per day.
In exchange, Tehran would permit unrestricted passage through the Strait of Hormuz without imposing transit tolls.
Even after restrictions are lifted, officials cautioned that shipping traffic will take time to normalize.
“It takes a little bit of time because you have lines in the straits, you have ships that have different risk tolerances — some crews are ready to go down [now] … some crews want to see a little bit more stability for the next couple of days, maybe the next couple of weeks,” the official said.
“… That will ramp up slowly over time.”
Sanctions relief is also expected to be tied broadly to Iranian conduct rather than any single action, officials said.
“Sanctions relief is not tied specifically to any particular conduct, it’s tied generally to them behaving more appropriately,” the first official said. “Obviously the thing that we care the most about is the nuclear program, and making progress on … ensuring they don’t rebuild [nuclear facilities].”
Although officials declined to detail the exact conditions, they indicated that any easing of sanctions would be linked primarily to dismantling Iran’s nuclear ambitions and curbing support for terrorist groups.
Iran is also reportedly exploring additional revenue sources beyond the initial 60-day negotiation period.
According to a regional source, Tehran is working with Oman to establish mandatory charges for “birthing, insurance and other ancillary services” connected to maritime traffic after the negotiation window concludes.
The idea follows Iran’s earlier proposal to impose tolls on vessels using the Strait of Hormuz, a plan rejected by the Trump administration and widely viewed as inconsistent with international law.
Iranian Foreign Ministry spokesman Esmail Bagahei described the new fees as compensation for Iran and Oman’s role in “maintaining the environment,” though critics argue the plan is effectively an attempt to collect payments from vessels without formally calling them tolls.
While the United States has firmly opposed direct tolls, officials have not yet clarified whether the memorandum allows Iran and Oman to impose such service-related fees once the 60-day period expires.
{Matzav.com}
