Countries around the world are negotiating with U.S. President Donald Trump over tariffs, but Iran, a long-time opponent, is now presenting its economy as a potential investment opportunity.

With talks about Iran’s nuclear activities progressing, Iranian officials are actively promoting their economy to the White House. This is the first time in decades that they have openly tried to engage with the U.S. to secure a better, more lasting nuclear deal. Just as Trump wants a deal that benefits the U.S. more than the one he canceled in 2018, Iran also wants a deal that works better for them. Abbas Araghchi, Tehran’s top diplomat, mentioned in a recent op-ed for the Washington Post that a new nuclear agreement could unlock an economic opportunity worth a "trillion dollars" for U.S. companies. This would be in a country of around 90 million people, which also holds some of the world's largest oil and gas reserves. “Saying there’s a trillion-dollar opportunity as opposed to a trillion-dollar disastrous war, is a way to hook President Trump into a deal,” said Ellie Geranmayeh, head of the Middle East and North Africa program at the European Council on Foreign Relations.

It's a strategy similar to the one Russia used in its talks with the US over ending the war in Ukraine. Changing the US-Iran relationship from hostility to economic cooperation is a difficult challenge, but it could help settle a conflict that has kept Middle East security unstable for many years. The US has placed sanctions and trade restrictions on Iran since the two countries cut ties after the 1979 Islamic Revolution and the Iran hostage crisis. Iran, as a theocratic state, has positioned itself as a strong opponent to US influence in the Middle East, with its nuclear program and anti-Israel stance being major points of tension.

Araghchi said the country’s nuclear program could attract American investment, with the potential for contracts worth tens of billions of dollars. “The Iranian market alone is big enough to revitalise the struggling nuclear industry in the US,” he said in separate remarks on X last week. A U.S. State Department spokesperson told Bloomberg that President Trump has clearly stated Iran must not get a nuclear weapon. They also said that it’s not in America’s best interest to discuss sensitive topics like this in public.

“We do not confirm or deny details of ongoing negotiations,” said a spokesperson for the White House’s National Security Council. Donald Trump has previously talked about the economic opportunities in Iran. Earlier this year, Bloomberg reported that he even asked Russian President Vladimir Putin, a country friendly with Iran, to help start talks with Tehran. “I want Iran to prosper,” Trump said this month. “I don’t want to do anything that will hurt anyone, but Iran can’t have nuclear weapons. We don’t want to take away their industry or their land.” Iran’s Supreme Leader, Ayatollah Ali Khamenei, who reluctantly supported the 2015 nuclear deal made during Obama’s presidency (which Trump later withdrew from), now says, according to President Masoud Pezeshkian, that he sees no problem with American investors putting their money into Iran. Iran has more to lose in these negotiations than the U.S., especially since Trump has threatened to bomb Iran’s nuclear sites if a deal isn’t reached.

Also, Iran’s influence in the region has taken a big hit. Israel’s war with Hamas in Gaza, which is backed by Iran, and its attacks on Hezbollah last year have weakened Iran’s position. On top of that, Bashar al-Assad, Syria’s former president and a key ally of Iran, was overthrown in December. Supporters of Iran’s Supreme Leader Khamenei, who usually take a hard stance, seem to be backing Araghchi’s diplomatic approach to the U.S. This shows that the country’s leaders are feeling pressure to fix the economic crisis, which is making them even more unpopular at home. “They don’t have many cards up their sleeves in terms of negotiations, they’re less threatening than a few years ago, and their proxies have lost a lot of their influence,” said Homayoun Falakshahi, head of crude oil analysis at Kpler. “They’re trying to say to the US that you can benefit from a deal with us, and we are open to your companies to invest.”  When the 2015 nuclear deal was signed, it paused many U.S. restrictions that applied to other countries (called secondary sanctions), but it didn’t lift the main U.S. sanctions. So, American companies were still not allowed to invest directly in Iran.

Later, when President Trump pulled out of the deal, he took a tougher stance known as “maximum pressure.” This not only brought back the earlier sanctions but also added more, like banning other countries from buying oil from Iran, a member of OPEC. Since 2018, Iran's oil exports have dropped sharply, many foreign companies have pulled out, and the national currency has lost nearly 90% of its value compared to the US dollar. Last winter, the country also struggled with shortages of fuel and electricity. Now, Iranian oil and gas officials are trying to attract foreign investment to help raise the $135 billion they say is needed to repair and improve the country’s energy sector.

“It will be one of the latest huge opportunities for oil and gas companies globally,” Falakshahi said, noting that the financial terms offered by Iran to foreign companies will be crucial. There are several big challenges when it comes to investing in Iran. These include corruption, the strong control of the economy by the government, and a banking system that is cut off from the rest of the world and doesn’t meet global standards. American companies, in particular, might also face criticism from groups in Washington and Israel that are strongly against Iran.

The original nuclear deal, officially called the Joint Comprehensive Plan of Action, limited Iran’s ability to enrich uranium. In return, Iran was supposed to get relief from economic sanctions. When the deal started in January 2016, Iran soon said it wasn’t seeing the expected economic benefits. A major issue was that European companies found it hard to trade with Iran because many U.S. restrictions were still in place. This time, Iran’s main aim is to get those primary U.S. sanctions lifted, so the country can grow economically and make progress in technology, according to economist Bijan Khajepour, a partner at Eurasian Nexus Partners. Trump originally wanted a new deal with Iran that would stop it from supporting groups in other countries and from developing its missile program. But now, based on what he has said publicly, his main goal seems to be just making sure Iran never builds a nuclear weapon.

One way Iran could help reassure the U.S. is by inviting American companies to invest in its nuclear program. This might convince the U.S. to stay committed to any future agreement. However, while the idea of deep access to Iran’s economy might appeal to Trump and help Iran solve some of its issues, it would take a major political shift and strong commitment from Iran’s government, according to Geranmayeh of the European Council on Foreign Relations.  “To lift all US primary sanctions and legal restrictions on trade, you’d need a transformational approach,” she said. “It will require huge gives on the Iranian side, and a major push by Trump.”