The Trump administration has proposed a $10bn fund to help Middle East countries rebuild energy infrastructure damaged in the Iran war and reduce reliance on the Strait of Hormuz, the Wall Street Journal reported Monday. Washington would contribute $5bn and seek matching contributions from eight regional partners: Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan.

The initiative, named the Partnership for Allied Trust and Construction (Pact), would be managed by the Development Finance Corporation, a US federal agency whose programmes have historically targeted developing countries rather than wealthy Gulf states. Discussions are under way and terms could still change, US officials said.

Some Middle East officials described the initiative as a US attempt to downplay the strategic weight of the Strait of Hormuz and project unity against Iran. They cautioned that building a fund to rebuild destroyed sites without a peace deal with Tehran would be premature, given the risk of renewed drone and missile strikes.

Bilal Saab, senior managing director at TRENDS US, said the strategy carried significant risk, noting larger Gulf producers such as Saudi Arabia and the UAE have alternative routes while smaller states remain more dependent on the strait. The seven-month conflict has damaged pipelines, refineries and gas export terminals, with repair costs estimated in the tens of billions of dollars.