US and Saudi Arabia Grow Closer in Nuclear Deal Talks

The United States and Saudi Arabia are growing closer in discussions regarding a nuclear agreement, with both nations expected to announce the deal on Wednesday (22/7/2026) local time. The announcement comes amid renewed fighting between the Gulf oil giant and Iran-backed Houthi rebels. Citing two unnamed US officials, the New York Times reported on Tuesday (21/7) that the Trump administration plans to formally sign and announce the agreement with Saudi Arabia. The administration of President Donald Trump stated the deal would provide billions of dollars for the US nuclear industry. A provision in the 30-year agreement would require American companies to build uranium enrichment facilities in Saudi Arabia if a joint study concludes it is necessary, the Wall Street Journal reported. However, several US lawmakers from both parties and Israeli officials have voiced opposition to the civilian nuclear project for Saudi Arabia, fearing it could eventually be converted to develop nuclear weapons. The deal is expected to be submitted to the US Congress in the coming days, though this is largely a formality as congressional approval is not required for it to be enacted. With fighting reigniting between the United States and Iran, Tehran’s allies in Yemen, the Houthi rebels, threatened to expand the war this week, announcing they would blockade Saudi ports. Saudi Arabia and the Houthis exchanged fire last week for the first time in several years, threatening a ceasefire that had held since 2022. In a related development, the US State Department approved a USD 1.96 billion (approximately IDR 33.5 trillion) arms sale to strengthen Saudi Arabia’s air defences on Wednesday (15/7). ‘This proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a major non-NATO Ally that is a force for political stability and economic progress in the Gulf region,’ the State Department said in a release. Among the weapons sought by Saudi Arabia are up to 20,000 Advanced Precision Kill Weapon Systems and their warheads, described by the US Navy’s website as ‘a low-cost method of destroying targets while limiting collateral damage in close combat.’ The principal contractor is BAE Systems in Nashua, New Jersey. ‘The proposed sale will improve Saudi Arabia’s capability to deter current and future threats by strengthening its homeland defence, and enhance interoperability with US forces and other regional and NATO forces,’ the State Department release stated.