Dubai, UAE — New details of the framework agreement reached between the United States and Iran indicate that negotiators are seeking to combine economic incentives, sanctions relief and extended diplomacy in an effort to secure a lasting end to their three-month conflict.
At the centre of the memorandum of understanding is a proposed $300 billion private investment vehicle, known as the Reconstruction and Development Fund, designed to encourage both sides to pursue a final settlement, according to a source with direct knowledge of the agreement cited by Reuters.
The fund would not involve government money or reparations payments and would instead draw financing commitments from companies in the United States, Gulf Arab states, Asia, Africa and South America. More than half of the proposed funding has already been pledged, the source said.
Investments are expected to target sectors including energy, logistics, manufacturing and transport, while regional countries could contribute through loans, credit facilities or direct financing of reconstruction projects.
The mechanism would only become operational after a comprehensive and satisfactory final agreement is reached.
Nuclear talks and sanctions relief
The framework reportedly extends the existing ceasefire by a further 60 days, creating a window for negotiations on Iran’s nuclear programme and a permanent settlement.
A senior U.S. official told Reuters that Washington would waive sanctions on Iranian oil under the agreement, potentially allowing millions of additional barrels of crude to return to international markets.
However, President Donald Trump said at the G7 summit in France that the memorandum was not a final agreement and insisted it did not provide immediate sanctions relief.
“It’s a memorandum of understanding,” Trump said, warning that military action could resume if negotiations broke down.
The agreement leaves unresolved several of the issues that had been at the heart of the conflict, including the future of Iran’s stockpile of highly enriched uranium.
According to details that have emerged so far, Iran’s ballistic missile programme and its support for allied groups such as Hezbollah do not appear to be part of the current negotiating framework.
Hormuz reopening welcomed
The accord also includes the reopening of the Strait of Hormuz and the lifting of the U.S. naval blockade imposed during the conflict.
The development has been welcomed by international organisations and allies concerned about energy security.
NATO Secretary General Mark Rutte described the restoration of free passage through the waterway as a “massive step forward”.
The International Energy Agency said a sustained reopening of Hormuz could allow Gulf exports and Iranian oil shipments to recover gradually after what it described as the largest oil supply disruption in history, with more than 14 million barrels per day affected during the conflict.
Earlier this week, oil prices fell to three-month lows as traders anticipated the return of Gulf supplies and the resumption of Iranian exports.
Regional diplomacy and security concerns
Diplomatic contacts continued on Wednesday as Russian Foreign Minister Sergei Lavrov discussed the framework agreement with Iranian Foreign Minister Abbas Araghchi.
Moscow said it was prepared to support efforts to resolve the crisis using its experience and expertise.
At the same time, tensions in Lebanon remained a potential obstacle to a broader settlement.
Lebanese President Joseph Aoun said negotiations with Israel were independent of the U.S.-Iran agreement, while reiterating support for any effort that could secure a ceasefire.
The G7, meanwhile, called for an immediate and durable ceasefire in Lebanon, the disarmament of Hezbollah and guarantees for Lebanon’s territorial integrity.
Israeli air strikes continued in southern Lebanon, where the Lebanese health ministry has reported thousands of deaths since the conflict began and aid agencies continue to document widespread destruction.
