The Gulf countries are alarmed by the concessions that the US wants to make to Iran

The United States has entered into a preliminary agreement with Iran aimed at ending the ongoing conflict between the two nations, according to reports from multiple international media outlets. The deal, signed on June 17 by President Donald Trump, outlines a framework for a broader peace agreement within 60 days. Central to this arrangement is a proposed reconstruction fund worth $300 billion intended to aid Iran's economic recovery after years of war and sanctions. However, the funding mechanism behind this substantial sum remains unclear, raising questions about its financial implications and who will bear the burden of such a large investment.

President Trump has consistently denied that U.S. taxpayer dollars will be used to finance the fund. During his appearance at the G7 conference in France, he emphasized that the United States would not contribute even a single cent. “We’re not investing,” Trump stated. “We’re not giving them ten cents.” He further dismissed claims that the U.S. would provide $300 billion to Iran, calling such reports false. Instead, he highlighted the benefits of the agreement, including lower oil prices and military victories, suggesting that the deal would bring more advantages than costs to the American economy.

Despite these assurances, the question of how the $300 billion fund will be financed remains unresolved. Vice President JD Vance, during a press briefing on June 18, reiterated that the U.S. would not contribute financially to the fund. He indicated that the responsibility would fall upon private investors and neighboring countries willing to support Iran’s reconstruction efforts. While Vance did not specify which entities might cover the costs, he suggested that there is significant interest among Arab states and others outside the Middle East in participating in Iran’s rebuilding process, provided that Iran adheres to the terms of the agreement.

According to a report by Reuters, over half of the $300 billion has already been committed, though the full amount will be sourced entirely from private funds. Companies based in the U.S., Gulf states, Asia, South America, and Africa have reportedly pledged their support. The administration views the fund as a vehicle for private investment rather than a government-led reconstruction program. This approach aligns with Trump’s broader strategy of minimizing direct federal involvement while encouraging private sector engagement in global affairs.

However, concerns persist regarding the potential consequences of this agreement, particularly among U.S. allies in the Gulf. Secretary of State Marco Rubio is currently undertaking a diplomatic mission to reassure these allies about the terms of the preliminary agreement. His visit includes meetings with leaders in the United Arab Emirates, Kuwait, and Bahrain, where he aims to address their fears about the deal's provisions. One of the primary concerns revolves around the absence of restrictions on Iran's ballistic missile program, which could enhance its military capabilities and regional influence.

Additionally, the proposed $300 billion reconstruction fund has raised eyebrows among Gulf states, many of whom worry that a portion of these resources might be diverted toward strengthening Iran's military infrastructure or supporting allied groups in the region. These states host critical U.S. military bases, forming the backbone of American security architecture in the Middle East. Any shift in their strategic alignment with the U.S. could significantly affect the effectiveness of American military operations in the area.

Rubio faces the delicate task of balancing reassurance with diplomacy, ensuring that Gulf allies feel secure without undermining the progress made in negotiations with Iran. His discussions also touch on broader regional issues, including navigation rights through the Strait of Hormuz and maintaining peace and stability throughout the region. Despite initial public support for a diplomatic resolution to the conflict, some Gulf leaders privately express shock at the specifics of the U.S.-Iran agreement, highlighting the complexity of navigating both regional tensions and international relations.

As the talks continue, the focus shifts to the technical aspects of the agreement, with ongoing discussions mediated by Qatar and Pakistan. A first round of negotiations concluded last week, and further technical discussions are set to take place this week. The ultimate success of these talks hinges on addressing the concerns of all parties involved, particularly the Gulf states, whose cooperation is crucial for the stability of the region and the implementation of the proposed reconstruction fund.