Trump Administration Proposes $5 Billion Fund to Rebuild Gulf Energy Infrastructure After Iran War

The Trump administration has proposed a $5 billion U.S. contribution to launch a new investment fund aimed at rebuilding energy infrastructure across the Gulf region that was damaged during the Iran war, according to the Wall Street Journal. The fund, called Pact, would be managed by the U.S. Development Finance Corporation and is designed to reduce the region's dependence on the Strait of Hormuz, a critical oil transit chokepoint whose traffic remains sharply below pre-war levels.

Washington is seeking matching contributions from eight countries: Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq, and Jordan. If those contributions materialize, the fund could reach $10 billion in total. Discussions are ongoing and the terms could still change.

The proposal addresses a persistent strain on Gulf energy producers, who have been relying on costly workarounds to move oil since Hormuz traffic collapsed. By rebuilding damaged infrastructure and building out alternative routes and facilities, the fund would aim to stabilize regional energy flows and reduce vulnerability to future disruptions.