US considers $10bn fund for Gulf energy sector — Anadolu Agency

The United States is discussing the possibility of allocating $5 billion to a new multinational fund to repair energy facilities in Persian Gulf countries damaged during the war with Iran. The initiative is also intended to help countries in the region find export routes bypassing the Strait of Hormuz.

Partners’ contributions

As Anadolu Agency reports, citing The Wall Street Journal, Washington seeks to secure another $5 billion from eight regional partners: Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan. If such contributions are made, the mechanism’s total volume will amount to $10 billion.

The initiative is planned to be called the Partnership for Allied Trust and Construction, or Pact. According to the publication, the fund would be managed by the U.S. International Development Finance Corporation. U.S. officials stressed that negotiations are ongoing, terms may change, and no country’s participation in the project is currently guaranteed.

More current news is available on the UA.News Telegram channel Telegram.

Reconstruction risks

Some regional officials, according to The Wall Street Journal, view the plan as an attempt to portray the Strait of Hormuz as less critical and demonstrate a common position against Tehran. At the same time, they consider financing reconstruction before a peace agreement is reached premature, as Iran could attack new facilities.

The publication also reported that over seven months of war, Iranian missiles and drones struck dozens of oil refineries, oil fields and gas export terminals. Earlier this month, a drone attack disabled a Saudi bypass pipeline, directing more oil through the Strait of Hormuz and raising tanker shipping rates to record levels. Repair costs are estimated at tens of billions of dollars.