Trump administration signs commercial nuclear agreement with Saudi Arabia

The Trump administration formalized a commercial nuclear cooperation agreement with Saudi Arabia on Wednesday, July 22, 2026, creating a legal framework that could allow American companies to construct and operate nuclear power facilities on Saudi soil. The Department of Energy announced the signing by Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman. The deal includes a secondary agreement concerning bilateral safeguards, though the long-term project arrives amid a broader regional conflict involving the United States, Israel, and Iran.

The agreement, often referred to as a 123 agreement, provides U.S. Firms with priority access to the Saudi nuclear market. While the administration contends the pact promotes commercial ties and energy diversification, the absence of stringent nonproliferation requirements has drawn sharp criticism from lawmakers and nuclear policy experts. Unlike the model established with the United Arab Emirates — which explicitly forewent uranium enrichment — the current deal does not include the so-called "gold standard" provisions. These would typically prohibit a partner nation from enriching uranium or reprocessing nuclear fuel.

According to an administration memo, the agreement is designed for peaceful energy cooperation and includes nonproliferation terms under the Atomic Energy Act. However, reports from Cbc and the National Post indicate that the framework could pave the way for a uranium enrichment facility in the kingdom following a joint study. One source familiar with the proceedings noted that the deal does not require Saudi Arabia to adopt the Additional Protocol of the International Atomic Energy Agency, which would grant the agency more intrusive inspection and monitoring capabilities.

Secretary of State Marco Rubio, speaking from the Philippines, defended the administration's position against concerns that the deal might encourage regional competition. The U.S. is not going to reach any agreement with any country in the world that leads to the risk of proliferation, Rubio said. Despite this, experts warn that the potential for domestic enrichment gives Saudi Arabia a significant strategic lever. Rosemary Kelanic, the Middle East director at Defense Priorities, noted that such capabilities could allow Riyadh to threaten weaponization to extract further security concessions from Washington.

The timing of the deal has intensified scrutiny, as it coincides with an ongoing U.S. War against Iran, a conflict partly predicated on Tehran’s own nuclear ambitions. Matthew Bunn, a nuclear proliferation expert at Harvard’s Kennedy School, suggested the Saudi deal complicates the possibility of reaching a stable agreement with Iran, as Tehran may be less likely to accept intrusive inspections if regional rivals are held to lower standards.

Congressional Review and Future Implications

Under existing procedures, the agreement must be submitted to Congress for a 90-day review period. While the agreement could technically be blocked by a joint resolution of disapproval, observers note that a Republican-controlled legislature is unlikely to challenge the administration on the policy. Opposition has emerged from some lawmakers, including Rep. Brad Sherman, who argued via social media that the U.S. Should not facilitate potential proliferation for the sake of commercial profit.

• Duration: The partnership is expected to span several decades.
• Current Regional Context: Saudi Arabia recently signed a mutual defense pact with Pakistan, which has stated its nuclear program could be made available to the kingdom if necessary.
• Strategic Risk: Crown Prince Mohammed bin Salman has previously stated that Saudi Arabia would pursue nuclear weapons if Iran were to successfully develop them.
• Technical Reality: Experts point out that enrichment is not an automatic path to a weapon, as other components, such as synchronized high explosives, are also required, but it remains a critical step in a nuclear fuel cycle.

As the review period begins, the U.S. Faces a complex strategic outlook. The administration maintains that the deal is focused on technology and prosperity, while critics warn it could entrench the U.S. In regional security dynamics for the foreseeable future.