Trump Proposes $5 Billion Fund to Rebuild Gulf Energy Infrastructure

The Wall Street Journal reported that President Donald Trump has proposed a reconstruction fund starting with $5 billion in U.S. money to repair energy infrastructure damaged amid the war with Iran. The plan, referred to as the Partnership for Allied Trust and Construction (PACT), would invite several Gulf states to contribute, with Washington aiming for a combined fund of about $10 billion. WSJ attribution for the report came from unnamed sources in Washington and Gulf capitals. According to the report, PACT would involve the United States alongside Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Oman and Jordan. The fund’s stated objectives include financing repairs to refineries, oil fields and other energy facilities that have been targeted during the conflict and helping Gulf states develop export routes that avoid the Strait of Hormuz. The proposal reflects concerns that the war, which the Wall Street Journal described as having begun when the United States and Israel opened hostilities at the end of February, is harming the economies of U.S. regional partners. Commentators cited in the WSJ warned that launching a reconstruction program while the conflict is ongoing may be premature, noting that a durable peace remains unlikely in the near term. Practical and strategic obstacles could limit the effectiveness of alternatives to Hormuz. Some states already use or have access to non-Hormuz routes—Iraq via a pipeline to Turkey, and Saudi Arabia historically via its East-West pipeline—but capacities and operational status vary. The UAE has said it intends to expand pipeline capacity to Fujairah outside the Strait, yet pipelines themselves can be targeted, as demonstrated by Houthi attacks on Saudi infrastructure. Reported analysts told the WSJ that Gulf governments are increasingly accepting the need to create dependable corridors that bypass Hormuz, but they emphasize that ending the war is the primary condition for long-term security of Middle East energy flows.