US President Donald Trump has proposed a $10 billion fund to rebuild war-damaged energy infrastructure and develop oil and gas export routes that bypass the Strait of Hormuz, according to The Wall Street Journal.

The proposed Partnership for Allied Trust and Construction (PACT) would bring together the US, Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan, the report said, citing US and Middle Eastern officials and documents. 

Discussions remain ongoing, and terms could change.

The plan follows months of conflict with Iran that have highlighted vulnerabilities in Gulf energy infrastructure and the region’s reliance on the Strait of Hormuz, a key route for global oil and gas shipments.

Under the proposal, Washington would provide $5 billion, matched by $5 billion from regional partners. 

The fund would be managed by the US Development Finance Corporation and target repairs to pipelines, refineries and other energy facilities, while supporting alternative export routes.

The initiative comes as oil markets show signs of easing after major supply disruptions. 

Brent crude has fallen to around $98.11 a barrel, slipping below $100, as Saudi Arabia works to restore its East-West pipeline and diplomatic efforts between Washington and Tehran continue.

Saudi Arabia has resumed pipeline operations at reduced rates, with full capacity expected to return over several weeks. 

The pipeline can transport about 7 million barrels per day, although its initial restart is expected to remain below full capacity.

The proposal aims to strengthen energy resilience while supporting continued exports during future disruptions and crises.