The United States has offered to contribute $5 billion to a new fund to rebuild energy infrastructure in the Middle East, The Wall Street Journal reported.
Under President Donald Trump's plan, eight other regional partners of Washington - Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan - are expected to provide the same amount. This would bring the total size of the fund to $10 billion. The plan also includes building infrastructure to reduce dependence on the Strait of Hormuz for oil and gas supplies. The Wall Street Journal wrote that such a move is a "tacit admission that the seven-month conflict has shaken the global energy market and destroyed regional pipelines and refineries, the restoration of which will be expensive." According to the publication, the parties are still discussing the details of the fund and it is not clear whether other countries will join. The Strait of Hormuz remains a key route for about 25% of global oil trade and about 20% of liquefied natural gas. Sources: The Wall Street Journal