Who will give Rs 28410000000000 to Iran? US Secretary of State Marco Rubio heads to Gulf to reassure worried allies; What is the deal?

At the heart of the deal to end the conflict in West Asia lies a $300 billion deal to reconstruct and develop Iran. However, it remains unclear who will foot the bill. US Secretary of State Marco Rubio is currently on a Middle East tour to reassure regional partners. With Gulf nations being concerned that this could increase Tehran’s military capabilities, several steps have reportedly been taken toward a potential long-term agreement between the United States and Iran.

Here’s what we know about the fund and its potential backers.

What is the deal between US and Iran

According to the memorandum of understanding, Washington “undertakes with regional partners to develop a definitive mutually agreed plan with at least $300 billion for the reconstruction and economic development” of Iran.

“The mechanism for the implementation of this plan will be finalised as part of a final deal within 60 days. All required licenses, waivers, and permissions needed for the relevant financial transactions will be granted by the United States of America,” it added.

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Who will fund Iran’s $300 billion rebuild plan?

The text does not clarify the source of funding, which is just one of several economic incentives the US has offered Iran to persuade it to sign a definitive deal. It also mentions the end of “all types of sanctions” on Tehran upon the signing of a final agreement, as the US immediately issued exemptions allowing it to sell its oil.

US Vice President JD Vance had said that Iran would only receive the benefits if it proves adherence to the conditions that will be hammered out in the 60-day period, which, according to him, started last Thursday. He added that Tehran will “never get a dime” from American taxpayers under the deal.

Will the Gulf pay?

Gulf nations, deeply divided over Iran following the war, have yet to confirm they would invest in the scheme to reconstruct and develop their powerful neighbour, which has called on the United States to pay war damages.

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Iran desperately needs the funds, “so the hope is that the potential of greater investment longer term will help with further de-escalation”, said Anna Jacobs, a non-resident fellow at the Arab Gulf States Institute. “But the question is whether trust can be restored to allow for that.”

Regarding the funds, Saudi Foreign Minister Prince Faisal bin Farhan declined to comment on their details last week but said that following Iran’s Gulf attacks, “we’re going to have a conversation on how we rebuild that trust, how we rebuild that relationship before any concept of economic cooperation, mutual investment or anything like that can rationally be addressed”. Domestic investment is a priority for the kingdom, he added.

Why are Gulf states worried?

US Secretary of State Marco Rubio has embarked on a three-day tour to the Middle East, where he will meet with the leaders of the UAE, Kuwait, and Bahrain. According to reports, most Gulf nations have welcomed the effort to prevent the conflict between the US, Israel, and Iran, but are concerned about what Iran might gain if the negotiations succeed.

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