Trump's $300B Iran investment fund may be 'close to impossible' due to IRGC sanctions law, expert warns

A proposed $300 billion investment fund for Iran, part of a U.S.-Iran memorandum of understanding, faces significant legal hurdles. Experts warn that U.S. sanctions law, specifically regarding the Islamic Revolutionary Guard Corps' (IRGC) control over Iran's construction sector, could make the fund "close to impossible" to implement. The memorandum, signed by Presidents Trump and Pezeshkian, aims to end the war and restore traffic through the Strait of Hormuz, with the U.S. agreeing to lift sanctions and allow increased oil revenue. However, investing in IRGC-controlled sectors would likely require temporary waivers, which are limited to 180 days and may deter long-term investors. This legal complexity raises doubts about the feasibility of this central economic promise within the framework.

A recently signed Memorandum of Understanding (MoU) between the US and Iran, aimed at ending a war, includes a provision for a $300 billion reconstruction fund for Iran. President Trump and Vice President Vance have stated that US taxpayers will not fund this initiative, suggesting regional partners and external investors might contribute. However, the plan has become a political flashpoint, with Democrats and some Republicans criticizing the large sum, linking it to domestic affordability issues. The MoU, signed on Wednesday, outlines a 60-day negotiation period to determine the implementation mechanism for the fund. While the exact funding source remains undetermined, Trump has dismissed claims of direct US payment as "Fake News."