Iraq included in the US proposal for $5 billion to repair damage from the Iran war.
Iraq included in the US proposal for $5 billion to repair damage from the Iran war.
2026-09-22
Shafaq News – Washington
The Wall Street Journal revealed on Monday that the Trump administration has proposed creating a new fund to help Middle Eastern countries rebuild energy infrastructure damaged by the war with Iran.
The newspaper quoted American and Middle Eastern officials and documents as saying that the new fund will invest five billion dollars to repair the damage and also reduce dependence on the Strait of Hormuz for oil and gas transport .
This proposal is an acknowledgment that the seven-month conflict has disrupted global energy markets and severely damaged pipelines and refineries in the region.
The American plan seeks similar contributions from eight partners in the Middle East: Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq, and Jordan.
The combination of these contributions will result in the creation of a $10 billion investment fund, known as the “Partnership for Trust and Allied Construction”.
US officials indicated that talks regarding the fund are still ongoing, that the terms of the arrangement could change, and that the participation of other countries remains uncertain.
Some Middle Eastern officials saw this initiative as an attempt by Washington to reduce the strategic importance of the Strait of Hormuz in energy transport, and to highlight solidarity between the United States and its allies in the face of Iran.
They pointed out that setting up a fund to rebuild damaged energy facilities without reaching a peace agreement with Tehran might be premature, as the Iranian regime could target the new infrastructure with drones and missiles.
The proposed fund would be managed by the Development Finance Corporation, a federal agency that collaborates with the private sector to support U.S. national security policy.
Traditionally, the focus of this agency’s programs has been on projects in developing countries, not in the wealthy Gulf monarchies.
Energy analysts and officials have estimated the costs of repairing the region’s energy infrastructure at tens of billions of dollars, including engineering, construction, equipment and materials.
shafaq.com
