A proposed $300 billion investment fund for Iran included in the U.S.–Iran memorandum of understanding may face major legal obstacles under existing U.S.sanctions law, raising questions about whether the plan is workable even if both sides move toward a final agreement.The memorandum, digitally signed Wednesday by President Donald Trump and Iranian President Masoud Pezeshkian, is aimed at ending the war and restoring traffic through the Strait of Hormuz.
As part of the 14-point plan, the U.S.agreed to lift sanctions on Iran, allow Tehran to increase its oil revenue and regain access to parts of the international banking system, among other measures.But one of the most ambitious parts of the framework — a proposed $300 billion private investment fund for Iran’s reconstruction and development — may collide with a longstanding U.S.
determination that Iran’s construction sector is controlled directly or indirectly by the Islamic Revolutionary Guard Corps.The issue is not just technical.It goes to whether one of the central economic promises of the Trump-Iran framework can realistically be executed under current U.S.
law.If the $300 billion fund depends on investment in sectors Washington has already identified as IRGC-controlled, experts say the administration may be forced to rely on temporary waivers or new licenses — a legal structure that could make long-term investors wary and complicate any final deal.TOP SENATE REPUBLICAN RIPS INTO TRUMP'S IRAN DEAL, SAYS $300 BILLION MAKES OBAMA DEAL LOOK LIKE 'A PITTANCE'A proposed $300 billion investment fund for Iran included in the U.S.–Iran memorandum of understanding may face major legal obstacles under existing U.S.
sanctions law.(Mandel NGAN / AFP via Getty Images)The State Department formally determined in 2020, and again in May 2025, that Iran’s construction sector was controlled directly or indirectly by the Islamic Revolutionary Guard Corps.
Under the Iran Freedom and Counter-Proliferation Act, k...