The U.S. Development Finance Corporation would manage the fund while discussions on terms continue. Gulf officials are skeptical of the proposal, citing risks that rebuilt assets could be targeted again without a peace deal. Traffic through the Strait of Hormuz remains below pre-war levels as regional producers use alternative methods to move oil.
Wednesday, October 21, 2026
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Trump Proposes $5 Billion Pact Fund to Fix Iran War Energy Damage
Commodities29 days ago
Washington is seeking matching contributions from Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, Oman, Iraq, and Jordan to bring a proposed energy rebuild fund to $10 billion. The Trump administration's $5 billion seed investment in the Partnership for Allied Trust and Construction, known as Pact, targets pipelines and refineries damaged during the war with Iran. The plan focuses on creating new energy routes to reduce regional dependence on the Strait of Hormuz for oil and gas transport.
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