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Market Chatter: US Proposes $5 Billion Contribution to Fund to Repair Gulf Energy Infrastructure

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The US has suggested it will contribute $5 billion to a new fund to help Middle Eastern countries rebuild energy infrastructure damaged in the Iran war to reduce their dependency on the Strait of Hormuz to export energy, the Wall Street Journal reported Monday, citing US and Middle Eastern officials.

The proposal by the Trump administration would seek an equal contribution from the eight Middle Eastern countries Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan, to create a $10 billion investment fund. US officials said talks on the fund are ongoing and terms could change.

The proposal is an indirect acknowledgement that the seven-month conflict has disrupted global energy markets and damaged regional pipelines and refineries that will be costly to rebuild, the report said.

Middle East officials said the proposal appeared to be a US attempt to reduce the importance of the Strait of Hormuz as an energy conduit and to display US unity with its allies against Iran. Rebuilding facilities before peace with Tehran might risk the the infrastructure being struck again, they said.

has reached out to the White House for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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