The US is discussing a $10bn joint investment fund with Arab states to repair energy infrastructure damaged in the Iran war and build new pipelines to circumvent the Strait of Hormuz. Washington would commit $5bn to the Partnership for Allied Construction & Trust (Pact), with regional states funding a similar amount in a new holding company, according to a draft presentation seen by the FT.

The initiative aims to neuter Iran's ability to disrupt energy exports through the strait, which handled about a fifth of the world's oil and gas before the war. The presentation described Pact as a "historic $50bn+ investment platform" for strategic energy and infrastructure assets in the Middle East. Sovereign wealth funds and private capital firms could invest alongside the holding company, with Blackstone, BlackRock's Global Infrastructure Partners, and KKR listed as examples.

A person familiar said some named firms were "blindsided" by their mention in the draft. Donald Trump was expected to meet Arab leaders at the UN General Assembly in New York. The US would chair the Pact board, with negotiations starting in October.

The strait's closure has pushed Brent crude to just under $100 a barrel. Gulf states like Saudi Arabia and the UAE are already planning new pipelines, but infrastructure remains vulnerable to attack.