Six Gulf States Welcome US-Iran MoU as $300 Billion Iran Fund Faces Doubts
Updated
Updated · Al Jazeera English · Jun 25
Six Gulf States Welcome US-Iran MoU as $300 Billion Iran Fund Faces Doubts
3 articles · Updated · Al Jazeera English · Jun 25
Summary
All six GCC members backed last week’s US-Iran memorandum, framing it as a way to stop a war that spilled onto Gulf territory rather than as a sign of trust in Tehran.
Iran’s attacks on Gulf cities and its disruption of the Strait of Hormuz pushed Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman toward diplomacy, with analysts saying drones, proxies and shipping threats matter more than Iran’s nuclear program.
Qatar has emerged as a co-mediator representing broader GCC interests, and Gulf states are seeking a wider deal that covers Hormuz governance and regional security, not just nuclear limits.
A proposed Iran investment fund remains unsettled: JD Vance cited a $300 billion figure, Rubio said Gulf allies would not be asked to finance reconstruction, and Qatar’s prime minister called the number “aspirational.”
The MoU also reflects a longer Gulf shift after the 2018 US exit from the JCPOA and the 2019 attacks on Saudi and UAE targets, which helped drive restored UAE-Iran ties in 2022 and a Saudi-Iran deal in 2023.
How will the $300 billion fund rebuild Iran without also financing the proxy groups the deal aims to restrain?
With Israel rejecting the deal, what prevents a new conflict between Iran’s proxies and an isolated Israeli military?
The Strait of Hormuz reopens for now, but who will ultimately control this vital global energy artery long-term?
The $300 Billion Gamble: U.S.-Iran Deal, Regional Skepticism, and the Future of Middle East Stability
Overview
The United States and Tehran are working with regional partners to develop a $300 billion fund for Iran’s reconstruction and economic growth. This ambitious plan aims to foster stability after years of sanctions, with the U.S. making Iran’s frozen assets available and issuing necessary licenses for financial transactions. The fund’s details will be finalized within 60 days as part of a broader agreement, which also includes steps to remove sanctions. However, Gulf nations remain skeptical, fearing the money could be misused, highlighting the need for transparency and strong oversight to ensure the fund truly supports peaceful development.