The Donald Trump administration has proposed creating a new $5 billion fund aimed at financing projects to rebuild energy infrastructure in the Middle East that suffered extensive damage during the war with Iran.

According to U.S. and Middle Eastern officials, as well as documents cited by the Wall Street Journal, the plan envisages investments in energy networks and infrastructure, with the ultimate goal of reducing the region’s dependence on the Strait of Hormuz for the transportation of oil and natural gas.

The initiative comes at a time when the security of maritime energy transportation routes has become a major focus of international concern.

Goal of Strengthening Energy Security

The Strait of Hormuz is one of the world’s most important energy corridors, as a significant share of global oil and natural gas exports passes through the area.

Through the new fund, Washington seeks to support projects that will strengthen the resilience of Middle Eastern countries’ energy systems and create alternative routes for transporting energy.

Reconstruction Following War with Iran

The plan is part of broader U.S. efforts to address the impact of the war with Iran on the region’s energy infrastructure.

Details regarding the fund’s financing and operation have not yet been fully disclosed. However, according to the same sources, the initiative is being developed in cooperation with Middle Eastern countries.

The proposal forms part of a broader strategy by the U.S. administration to strengthen the energy security of its allies and diversify routes for transporting oil and natural gas.