Former President Donald Trump has approved a significant nuclear agreement with Saudi Arabia, permitting the kingdom to develop its own civilian nuclear program. This deal is being finalized as the conflict with Iran intensifies, leading to increased tensions in the Red Sea and a surge in oil prices.
The agreement, reportedly valued in the tens of billions of dollars, is structured to involve U.S. companies in building uranium enrichment facilities within Saudi Arabia. However, reports indicate that Saudi leaders have agreed to only limited international inspections of these sites, raising concerns among some U.S. lawmakers and Israeli officials about the potential diversion of enriched fuel for weapons development.
This development is particularly controversial given the U.S. involvement in a war with Iran aimed at preventing Tehran from enriching uranium for its own nuclear program. Trump's administration has reportedly dropped a previous condition requiring Saudi recognition of Israel as part of the nuclear deal.
The pact is expected to last for 30 years and now faces a review in Congress, where opponents would need a veto-proof supermajority to block it.
The escalating conflict with Iran has significantly impacted regional stability. Iranian-backed Houthi militants recently declared a naval blockade of Saudi Arabia, threatening a critical Red Sea shipping route through which the kingdom diverts millions of barrels of oil daily. The closure of this route, along with the already affected Strait of Hormuz, could disrupt approximately a quarter of the world's oil and gas supply. Brent crude oil prices rose to $95 a barrel amid these heightened tensions.
Saudi Arabia's Crown Prince Mohammed bin Salman has previously stated that the kingdom would pursue nuclear weapons if Iran developed them. Saudi officials maintain that their nuclear program is strictly for civilian purposes, intended to power homes and free up crude oil for export. The kingdom has faced increased drone and missile attacks from Iran since the resumption of hostilities between the U.S. and Tehran earlier this month.
U.S. forces have been conducting strikes on Iran for eleven consecutive nights following the breakdown of ceasefire talks two weeks prior. Secretary of State Marco Rubio has warned that Iran is not engaging seriously in peace negotiations. The U.S. aims to curtail Iran's ability to threaten commercial shipping in the Strait of Hormuz, after accusing Tehran of violating a Memorandum of Understanding by attacking oil tankers in the Persian Gulf. The U.S. Navy has responded by reimposing a blockade on Iranian ports and seizing several vessels.
In retaliation, Iran has launched missile and drone attacks targeting water and power plants in Gulf nations. The ongoing conflict has resulted in 17 American troop deaths and nearly 100 injuries from Iranian strikes on bases across the Middle East over the past two weeks.