By Patricia Zengerle

WASHINGTON, June 16 (Reuters) - President Donald Trump said on Tuesday he was willing to send his interim deal to end the war with Iran for review by the U.S. Congress, as lawmakers, including many of his fellow Republicans, said they were largely in the dark about the pact.

The U.S.-Iran agreement, announced on Sunday, has spurred optimism that a conflict that has killed thousands and disrupted the global economy will soon end.

By Andrew Mills, Maha El Dahan and Parisa Hafezi

DUBAI, June 16 (Reuters) - A $300 billion private fund designed to trigger investment into Iran is outlined in the U.S.-Iran framework agreement and more than half that sum has already been committed, a source with direct knowledge of the deal told Reuters.

The fund is designed to give both sides an economic incentive to conclude a final deal, said the source, who spoke on condition of anonymity because the plan has not yet been announced as Washington and Tehran prepare to sign on Friday.

June 16 (Reuters) - Hezbollah said on Tuesday it believes Iran will not sign a final nuclear deal with Washington unless Israel withdraws from Lebanon, as Iran's top diplomat said Israel's continued troop presence in Lebanon would be considered a breach of the U.S.-Iran memorandum of understanding.

Israeli troops still occupy a swathe of territory in southern Lebanon that they seized in their three-month air and land campaign against Hezbollah, which began after the Iran-backed group fired at Israel on March 2 in support of Tehran.

WASHINGTON, June 16 (Reuters) - The U.S. will allowIran to immediately begin selling oil and fuel under the memorandum of understanding the two sides reached to end the war, a senior U.S. official said on Tuesday.

The provision for waiving sanctions on Iranian oil sales takes effect once the agreement is signed this week and also covers services including banking, transportation and insurance to facilitate the sales, the source said.

The U.S. official said the agreement has conditions.

The uber-plush Burgenstock resort perched high above Switzerland's Lake Lucerne provides the dramatic setting for Friday's planned signing of the US-Iran memorandum of understanding to end nearly four months of war.

The luxurious hotel complex -- hard to access and therefore easy to seal off -- was proposed by Washington and Tehran as well as their Pakistani and Qatari mediators, Switzerland said Tuesday.

The tranquil and picturesque location, with water on three sides, is well-accustomed to hosting world leaders, movie icons and peace talks.

BEIRUT, June 16 (Reuters) - Lebanon has suffered the deadliest spillover of the regional war triggered by the U.S.-Israeli strikes on Iran more than three months ago, which is set to end with a deal between Washington and Tehran.

The conflict spread to Lebanon on March 2, when Iran-backed group Hezbollah fired on Israel in support of Tehran, triggering an Israeli air and ground campaign.

Here are some of the main costs for Lebanon.

CASUALTIES

By Nidal al-Mughrabi and Ebrahim Hajjaj

CAIRO/GAZA, June 16 (Reuters) - An Israeli strike killed at least two Palestinians in the central Gaza Strip, health officials said, as residents of an area in the north of the enclave fled their homes after Israeli forces expanded their control in the territory.

Medics said an Israeli strike near a residential building in the Nuseirat refugee camp, in the central Gaza Strip, killed two brothers, Ahmed and Mahmoud Abu Heen. The Israeli military did not immediately comment.

Oil prices dropped below $80 a barrel Tuesday on optimism over the promised reopening of the Strait of Hormuz, easing inflation pressures on global economies.

The slide accelerated to more than five percent after The Wall Street Journal reported that Washington could ease sanctions on Iranian crude as part of the deal to end the Middle East war, allowing Tehran to immediately sell crude and refined oil products.

International benchmark Brent North Sea crude ended at $78.96 a barrel, down 5.1 percent.

A military mission set up by France and Britain to help re-open the Strait of Hormuz is ready to deploy, following the announcement of a US-Iran deal to end the Middle East war.

Here's an overview of the coalition's resources and the role it can play in helping secure shipping through the Strait of Hormuz.

- Who has committed? -

France and Britain have been working since March to assemble a coalition to help restore traffic through a channel that carries around 20 percent of the world's oil.

A US-Iran deal aimed at ending the Middle East war will be signed at Switzerland's mountainside Burgenstock resort on Friday, the Swiss foreign ministry said.

Tehran and Washington announced Sunday they had agreed a memorandum of understanding aimed at ending the conflict, which broke out on February 28 with US-Israeli strikes on Iran and engulfed the Middle East.

"At this stage, the signing is scheduled for Friday, June 19, at Burgenstock," Switzerland's foreign ministry said in a statement.