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Trump proposes $5 billion fund to rebuild Gulf energy infrastructure
The plan would also support alternative oil export routes for Gulf states and target a total fund size of $10 billion.
U.S. President Donald Trump has proposed a reconstruction financing fund for energy infrastructure damaged during the U.S. conflict with Iran, with $5 billion in U.S. money proposed as a starting amount, according to information cited by the Wall Street Journal and relayed by OilPrice.
OilPrice reports that the proposed funding would also be used to help Gulf states develop alternative oil export routes that bypass the Strait of Hormuz, with the United States expected to ask those countries to contribute as well, aiming for a total size of $10 billion.
The plan is described as the Partnership for Allied Trust and Construction, or PACT, and would involve the United States along with Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Iraq, Oman, and Jordan, with many of their energy assets targeted by Iranian strikes due to the presence of U.S. military bases.
OilPrice adds that the Wall Street Journal characterized the fund proposal as an acknowledgement that the war, which began at the end of February alongside Israel, is weighing on the economies of key Middle East allies, while some commentators said the proposal may be premature given uncertainty around a permanent end to the conflict.