The Export-Import Bank of the United States approved two financing guarantees to support energy projects in Bahrain and Iraq, backing US exporters supplying equipment and services for oil-and-gas optimisation and a waste-heat recovery scheme.

Two guarantees, targeted projects The Export-Import Bank of the United States (EXIM) authorised two financing guarantees aimed at energy projects in the Gulf and in Iraq. One guarantee will back services and equipment for an oil and gas field optimisation programme in Bahrain, where US exporters will provide technical work to support the field operator's optimisation efforts. The second will support Iraq’s Ministry of Electricity by financing a waste heat recovery scheme, with a US equipment supplier set to provide machinery and services to upgrade an existing power plant so it can capture and reuse industrial steam and other waste-heat streams. EXIM said the two transactions are expected to sustain jobs across several US states. The bank presented the moves as part of a broader push to back US exporters and preserve manufacturing positions that tie into energy supply chains. Washington’s rationale EXIM said the guarantees are intended to increase American energy dominance as part of national security goals while supporting skilled manufacturing jobs across the country. The bank added that its tools — guarantees, insurance and loans — can be used to help US firms compete overseas and counter strategic rivals in key sectors. The bank’s statement linked the approvals to policy aims that stretch beyond commercial finance, framing the Bahrain and Iraq deals as ways to deepen US industrial ties in energy while boosting the export market for US suppliers of drilling, optimisation and power-generation equipment. Energy markets under pressure The timing of the EXIM approvals comes against a backdrop of heightened tensions and violence in the Gulf that have disrupted shipping and damaged energy infrastructure. Iran’s strikes and counterstrikes around the Strait of Hormuz have snarled maritime traffic. The waterway carries about one-fifth of the world’s oil and roughly 20 percent of global liquefied natural gas (LNG), and the fighting has left a cluster of vessels stranded offshore and several tankers damaged. At least five tankers were hit and two people were reported killed. Ship-tracking platforms have shown a big accumulation of vessels near the coasts of major Gulf producers, including Iraq, Saudi Arabia and Qatar. The immediate market reaction was sharp: Brent crude futures climbed as much as 13 percent at one point as operators and traders recalibrated supply expectations. Energy producers in the region have also reported operational disruptions. QatarEnergy paused production at facilities in Ras Laffan and Mesaieed following attacks on nearby infrastructure. Saudi Arabia temporarily halted operations at its Ras Tanura refinery after a fire tied to debris from intercepted drones. Those stoppages, together with blocked passages through the Strait of Hormuz, have tightened global supply and pushed prices higher.

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EXIM said the transactions form part of efforts to bolster US energy competitiveness and sustain manufacturing jobs tied to the export supply chain.

This article was created with AI assistance.