NEW: Trump administration proposed a $5 billion investment fund ("PACT") to rebuild Middle Eastern energy infrastructure damaged in the Iran war, seeking matching contributions from eight Gulf/regional partners for a $10 billion total.

It's a tacit admission the seven-month conflict has wrecked regional pipelines and refineries.

Gulf officials are skeptical.

Rebuilding without a peace deal risks Iran targeting new infrastructure, and smaller states like Kuwait and Qatar still depend on the Strait of Hormuz regardless.

The fund would be managed by the US Development Finance Corporation, an agency that normally targets developing countries, not wealthy Gulf monarchies.

Source: WSJ