President Trump [EPA=Yonhap News]A draft memorandum of understanding (MOU) for an end to hostilities between the United States and Iran includes the establishment of a private fund for Iran's reconstruction totaling $300 billion (approximately 454 trillion won), with over half of that amount already pledged, Reuters reported on the 16th (local time), citing sources.

The sources stated that this fund would be a 'private investment vehicle,' not a typical reconstruction or reparations program, and would not include any U.S. government funds or subsidies.

Furthermore, companies from the U.S., Asia, the Middle East, South America, and Africa have already agreed to provide over $150 billion in funding.

The sources mentioned companies from South Korea, Japan, Singapore, Malaysia, and the United States as having pledged contributions but did not disclose the full list.

The sources added that the investment sectors for these companies span energy, logistics, manufacturing, and transportation.

However, they did not comment on the entity or method of fund management, stating that key details are still under discussion.

Iran has not attracted significant foreign direct investment for over 40 years since the Islamic Revolution in 1979 and has been virtually excluded from global capital markets due to sanctions from the U.S. and the international community.

"The fund will be established only after the final agreement is signed," a source explained, adding, "Over the next 60 days, fund managers will work with Iran and investors to develop the scope and detailed plans for projects."

The Strait of Hormuz on the 15th (local time) [Reuters=Yonhap News File Photo]

The sources further explained that the fund is intended to provide an economic incentive for both the U.S. and Iran to reach a final agreement.

This can be interpreted as Iran, which has demanded war reparations, being able to attract overseas capital for post-war reconstruction, and the Trump administration, which has emphasized that there would be no direct cash support to Iran, finding a way to induce Iran back to the nuclear deal without using U.S. taxpayer money.

Previously, Iran demanded $400 billion in reparations from the U.S. for war damages, which the U.S. rejected, and subsequently, the idea of such a reconstruction fund emerged, Reuters reported.

The sources clarified that the fund is completely separate from negotiations for the lifting of U.S. sanctions on Iran and the release of frozen Iranian assets. In other words, the fund is being pursued through a mechanism with a different purpose and timeline than sanctions relief negotiations.

The U.S. and Iran agreed on a memorandum of understanding for the end of hostilities on the 14th, completing electronic signatures on the same day, and a formal MOU signing ceremony is scheduled to take place in Switzerland on the 19th.

The MOU to be signed at that time will serve as a basic framework for subsequent negotiations, and both countries' negotiation teams are expected to conduct detailed discussions over the following 60 days regarding Iran's nuclear program, sanctions relief, and operational methods for the Strait of Hormuz.