Washington (HRNW)- The United States has proposed establishing a $10 billion multinational investment fund to help rebuild energy infrastructure in the Gulf damaged during the ongoing conflict with Iran and develop alternative export routes that reduce reliance on the Strait of Hormuz, according to a Wall Street Journal report.
Under the proposal, Washington would contribute $5 billion to the fund and seek an additional $5 billion collectively from Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq, and Jordan.
The initiative, called the Partnership for Allied Trust and Construction (PACT), would be managed by the US Development Finance Corporation (DFC), according to the report. The proposed fund is intended to support reconstruction of damaged energy facilities and create infrastructure allowing oil and gas exports to reach global markets through routes that bypass the Strait of Hormuz.
US officials said discussions over the proposed fund remain ongoing and that its terms could still change. It is also unclear whether all eight countries approached by Washington will ultimately participate.
The proposal comes after months of disruption to regional energy infrastructure and international energy markets amid the conflict with Iran. The Wall Street Journal reported that repairs to damaged regional energy facilities could cost tens of billions of dollars, while alternative export routes could reduce dependence on the strategically important waterway.
The proposed fund would represent a major effort to combine US and regional financing for energy reconstruction while strengthening alternative transportation routes for oil and gas. However, its final structure, participating countries, and implementation timeline have yet to be determined.
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