Iran sought $400 billion in war compensation before $300 billion fund proposal emerged: Report

Iran initially sought around $400 billion in compensation for damage caused by the West Asia war with the US and Israel, but the demand was rejected by Washington, according to a Reuters report, citing an Iranian source.

The compensation demand is understood to have paved the way for discussions on an alternative economic package centred on a proposed $300 billion fund, which has emerged as one of the most closely watched elements of the draft agreement.

Details of the US-Iran agreement to officially end the war have not been made public yet, and President Trump has denied agreeing to such an economic package.
However, the proposed $300 billion fund is reportedly part of the deal but not intended to function as a compensation package, reparations programme or direct government aid mechanism.

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Instead, the proposal is structured as a private investment vehicle designed to channel long-term investments into Iran’s energy, manufacturing, transport and logistics sectors. The fund is aimed at creating economic incentives for both Washington and Tehran to move forward with a final agreement and maintain stability after the war.

Reuters reported that more than half of the proposed financing has already been pledged by companies from the US, Gulf Arab states, Asia, South America and Africa.

The broader agreement, to be signed this Friday, June 19, is also expected to include sanctions waivers for Iranian oil exports, talks on Tehran’s nuclear programme and measures to reopen the Strait of Hormuz, a key global energy shipping route.

US President Donald Trump has said the agreement could be made public within days and indicated that he may even read the document out before the media once a formal announcement is made.

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