A proposed $300 billion investment fund for Iran, included in the U.S.–Iran memorandum of understanding, may face significant legal obstacles under existing U.S. sanctions law. The memorandum, signed by President Donald Trump and Iranian President Masoud Pezeshkian, aims to end the war and restore traffic through the Strait of Hormuz.
Sanctions Law Hurdles
The issue lies in the U.S. determination that Iran’s construction sector is controlled directly or indirectly by the Islamic Revolutionary Guard Corps (IRGC). This finding creates sanctions risks for individuals or companies doing business in the sector under the Iran Freedom and Counter-Proliferation Act (IFCA).
Miad Maleki, a senior fellow at the Foundation for Defense of Democracies, stated that the legal and sanctions-related problems surrounding the fund are more complicated than simply seeking congressional approval. Maleki emphasized that the administration may need to rely on temporary waivers or new licenses, which could make long-term investors wary and complicate any final deal.
The Treasury Department and the Iranian mission to the U.N. did not immediately respond to requests for comment. The issue could become a congressional flashpoint, with IFCA waivers limited to 180 days and requiring justification to Congress.
Original reporting: Fox News (HLL/CB) — read the source article.
