Qatar says proposed $300B Iran reconstruction fund remains 'aspirational'

In an interview with the Financial Times published on Wednesday, he indicated that Gulf states could play a role in financing it if Tehran reaches a final settlement with the US.

"The figure of $300 billion that has been slated for a proposed Iran investment fund is an aspirational number," Sheikh Mohammed said.

He said "part of what we are doing now, as regional countries, is to create this regional security framework between us and Iran," adding that it "will hopefully have economic cooperation in the future between all of us — to bring the region back to stability."

According to the report, the Trump administration has suggested that Gulf states could finance the fund, which would initially serve as a vehicle for companies to invest in Iran.

He, however, did not clarify whether Qatar would participate financially.

"Our aim is that Iran flourishes and their economy grows; and our investment basically has always been purely on commercial decisions," he said.

The proposed funding mechanism is linked to Article 6 of the Islamabad Memorandum of Understanding between the US and Iran aimed at ending regional hostilities.

Under the provision, the US commits, together with its regional partners, to establish a final agreed program worth at least $300 billion for Iran's reconstruction and economic development.

The memorandum states that the implementation mechanism for the plan will be finalized as part of a final agreement within 60 days, while the US would provide all necessary approvals, waivers and licenses for related financial transactions.

Among the provisions of the memorandum are lifting the US naval blockade on Iran and reopening the strategic Strait of Hormuz for global energy supplies.

Hormuz dispute

On Hormuz, he said control of the critical waterway by one party is unacceptable and rejected any Iranian plans to impose shipping fees.

"Shipping traffic through the strait should go back to prewar numbers on day 30 of the memorandum," he added. "It cannot be normal in one day, and it will take a lot of effort."

He warned that the damage the war has inflicted on the global economy "would take time to repair even if the strait were fully open."

He said shortages of essential goods, such as fertilizers, urea and petrochemicals, will be felt in the coming months.

He said the strait had remained open, adding that when mediators checked with Iranian officials, they were told no order had been made to close it.

He stressed the importance of a direct communication channel between Washington and Tehran to avoid obstacles that could affect the reopening of the strait or any potential mine-clearing operations.

"The hotline agreed by the warring parties at their talks in Switzerland was needed to counter 'disinformation' and ensure coordination while mines were cleared from the crucial waterway," he added.

"We cannot accept a situation or a condition where our gateway to the world is controlled," he said.

"This is against international protocol. For a country like Qatar, it's our only water corridor," he added.

He also said Qatar resists any Iranian plans to charge ships transiting the strait fees.

​​​​​​​Regional security framework

When asked whether a 60-day ceasefire extension would be sufficient to reach a final settlement, he said the aim was to secure "at least the general agreement."

"There will be a lot of technicalities that will maybe take further time. This can come at a later stage for detailed agreements, this is on the nuclear [deal]," he added.

On regional matters, the prime minister said the next phase requires building a new security framework that includes regional countries and Iran to strengthen regional stability.

On Lebanon, he said the US and Iran had agreed on a "deconfliction" mechanism to halt the fighting between Israel and Hezbollah.

He said one of the key elements of this mechanism is "verifying ceasefire violations, which will be done in coordination between the Lebanese government, the US military's Central Command, Iran and the mediators."

He added that "the Israeli government has been escalating the conflicts instead of de-escalating and trying to engage in a constructive, responsible way."

Although the memorandum of understanding stipulates a cessation of hostilities in Lebanon, Israel continues its offensive, which began on March 2, and has resulted in 4,192 deaths and more than one million people displaced, according to Lebanon's Health Ministry.