As US secretary of state Marco Rubio heads to the Gulf to defend Washington's proposed peace deal with Iran, one provision has emerged as a major source of concern among America's Arab allies -- a planned $300 billion reconstruction and development fund for Tehran.
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While critics in the US have portrayed the proposal as a massive American payout to Iran, the Trump administration insists the money would come largely from Gulf states and private investors rather than US taxpayers.
The controversy stems from a draft memorandum of understanding between Washington and Tehran that envisages a reconstruction and economic development plan worth at least $300 billion for Iran. The provision has sparked criticism both in the US and across the Gulf, where several governments fear that a wealthier Iran could expand its regional influence and military capabilities.
The provision quickly drew criticism from Democratic lawmakers, who argued that such a massive commitment would be difficult to justify domestically.
"With $300 billion, we could end homelessness, fund cancer research for 40 years, and give every child free pre-K for over 7 years. Instead, Trump is sending it to Iran," Senator Amy Klobuchar wrote on X.
