US May Allocate $5 Billion for Middle East Reconstruction Following Iran Conflict

The administration of US President Donald Trump has proposed committing $5 billion toward restoring energy infrastructure across the Middle East damaged during the war with Iran. According to The Wall Street Journal, the initiative remains under discussion, and its terms could still be modified.

Dubbed the Partnership for Allied Trust and Construction (PACT), the proposal envisions establishing a $10 billion fund. Under the arrangement, the United States would supply $5 billion, with the remaining $5 billion matched collectively by eight Middle Eastern nations.

Participating countries would include Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq, and Jordan. The fund is slated to be managed by the US International Development Finance Corporation, though it remains uncertain whether all invited nations will officially join the effort.

The capital will target the repair of pipelines, oil refineries, and gas export facilities battered by the hostilities with Iran. Additionally, the initiative aims to reduce the Persian Gulf states' dependence on the Strait of Hormuz for oil and gas transit.

The Wall Street Journal notes that seven months of conflict have inflicted heavy damage on the region's energy footprint, with total reconstruction costs estimated in the tens of billions of dollars. The war has simultaneously disrupted global energy markets and driven up maritime shipping costs for petroleum.