U.S. Secretary of State Marco Rubio said the proposed Iran reconstruction fund was not discussed with Gulf Cooperation Council leaders during his regional tour, a fresh sign that one of the biggest financial pieces of the U.S.-Iran peace framework remains politically unsettled.
Rubio told reporters in Bahrain that the reconstruction fund is “way down the road” and would be considered at the “appropriate time,” according to The Washington Times. The issue matters because the U.S.-Iran memorandum of understanding calls for a reconstruction and economic development program for Tehran that officials have described as potentially worth at least $300 billion.
Reuters, in a report carried by WMBD, said Rubio wrapped up a three-day Gulf trip aimed at reassuring regional allies who worry the preliminary accord could be too favorable to Iran after months of missile and drone attacks across the Gulf. Reuters reported that Rubio did not discuss the $300 billion fund and that Gulf states fear Iran could use the money to rebuild military capacity.
Gulf states want a say in the Iran deal
Rubio said Gulf allies want to be informed “every step along the way” as negotiations move from the temporary framework toward a more permanent settlement. He also said Washington would not make decisions that undermine the prosperity, stability or security of Gulf partners, according to the Associated Press report published by the Los Angeles Times.
The Gulf Cooperation Council includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Those countries are central to U.S. military strategy in the region and were directly exposed to Iran’s wartime retaliation after the U.S. and Israel launched strikes on Iran in February.
The GCC meeting in Bahrain produced a joint statement backing continued negotiations but also stressing freedom of navigation through the Strait of Hormuz. The statement rejected Iranian tolls, fees or attempts to assert control over the waterway, according to the AP report.
The money question is not settled
The reconstruction fund has become one of the most sensitive parts of the framework because different sides are presenting it differently. Iranian officials have described sanctions relief and economic support as a major benefit of the agreement. U.S. officials have said any Iranian access to major funds would be conditional on nuclear concessions, inspections and other commitments.
The Washington Times reported that Vice President JD Vance previously said GCC countries would fund the effort, but that Iran would gain access only after meeting requirements tied to its nuclear program, highly enriched uranium and inspections. Saudi Foreign Minister Prince Faisal bin Farhan has said Riyadh did not have enough information about the fund and that any contribution would depend on rebuilding trust with Iran.
The dispute adds another layer to an already fragile process. The same talks are still wrestling with nuclear verification, sanctions relief, Israel’s role in Lebanon and the future of navigation through Hormuz. Rubio’s comments suggest the reconstruction fund is not ready for firm Gulf commitments, even as the Trump administration tries to keep allied support behind the Iran framework.