Washington: US President Donald Trump on Monday dismissed claims that the United States is providing financial payouts to Iran, calling reports of American funding "fake news" amid discussions of a multi-billion dollar reconstruction package.

According to Anadolu Agency, Trump stated on his social media platform, Truth Social, "The story that the US is paying Iran 300 million dollars is fake news." While he referenced a '300 million' figure, there was ambiguity regarding whether he was refuting the significantly larger '300 billion' sum mentioned by other administration officials and international media outlets.

US Vice President JD Vance clarified that any proposed $300 billion fund would originate from regional allies and not from American taxpayers. Vance told NBC News, "Not a single dime of that money comes from the United States." He elaborated that Gulf Arab nations might decide to invest only if Iran makes its economy attractive for investment and starts acting like a "normal country."

A senior US official confirmed earlier that while a multi-billion dollar fund is part of diplomatic discussions, financial progress is strictly "tied to performance." The Financial Times reported that the creation of the fund relies on a final settlement, which includes a 60-day ceasefire extension and the complete reopening of the Strait of Hormuz. It further highlighted that the capital would likely be managed through a framework designed for private companies interested in Iranian markets rather than direct government-to-government aid.