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US says it reached nuclear cooperation deal with Saudi Arabia - Finance news and analysis from Global Banking & Finance Review
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US says it reached nuclear cooperation deal with Saudi Arabia

Published by Global Banking & Finance Review

Posted on July 22, 2026

4 min read

· Last updated: July 22, 2026

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US says it reaches nuclear power deal with Saudi Arabia

Landmark Civil Nuclear Agreement Details and Reactions

By Timothy Gardner

July 22 (Reuters) - The U.S. and Saudi Arabia have reached a landmark agreement on civil nuclear power, the U.S. Energy Department said on Wednesday, a deal that allows the kingdom to build nuclear reactors using American technology and to enrich uranium.

Background of the Nuclear Deal

A civil nuclear deal with Saudi Arabia has been in the works for years during both President Donald Trump's first administration and that of former President Joe Biden.

No deal has come together before now, however, in part because of warnings from nonproliferation groups who say that it could offer Saudi Arabia a path to develop a nuclear weapon.

Nonproliferation Concerns

Unlike the Biden plan, the current deal does not include a so-called Additional Protocol that allows the U.N.'s International Atomic Energy Agency to carry out intrusive snap inspections.

The deal would also allow Saudi Arabia to enrich uranium and reprocess nuclear waste, both of which are potential pathways to making a nuclear weapon. The UAE agreed to forgo both of those when it signed a similar deal with the U.S. in 2009.

Terms and Safeguards of the Agreement

U.S. Secretary of Energy Chris Wright and his counterpart Prince Abdulaziz bin Salman signed the pact, known as a 123 Agreement, alongside a bilateral safeguards agreement, the U.S. Energy Department said in a release.

The administration said the deal also abides by nonproliferation agreements in the U.S. Atomic Energy Act, which are among the world's strongest. Saudi Arabia has long said if it does not partner with the U.S., it could partner with China or Russia which have different proliferation standards.

Congressional Approval Process

The energy department said the deal now goes to Congress. Unless Congress raises votes to object to the deal within 90 session days, the deal will go into force. But it would need to have a two-thirds majority to override a presidential veto.

Expert and Political Reactions

Some nuclear experts called on lawmakers to vote down the deal.

Nonproliferation Advocacy

"We urge all members of Congress on both sides of the aisle to recognize the risks and to exercise their power to reject or modify Trump’s proposed nuclear deal with Saudi Arabia so as not to open the door for nuclear proliferation in the Middle East even wider," said Kelsey Davenport, director for nonproliferation policy at the Arms Control Association.

Economic and Industry Impact

The about 30-year deal for the construction of AP1000 reactors, which is worth tens of billions of dollars, would benefit Westinghouse, jointly owned by Canada-based Cameco and Brookfield Asset Management.

Feasibility Study and Timeline

'MAKE US ALL LESS SAFE'

An industry source said the deal requires a feasibility study on using U.S. technology in Saudi Arabia. The study and the slow pace of building nuclear power plants and uranium enrichment means it could take many years to build the infrastructure.

Regional and International Implications

Saudi Crown Prince Mohammed bin Salman has repeatedly said he does not want the kingdom to build a nuclear weapon but it would if Iran did, raising concerns about potential proliferation. Several Democratic lawmakers have warned that the deal could start an arms race in the Middle East as the U.S.-Israeli war on Iran grinds on.

Political Statements

"They are allowing Saudi Arabia, a belligerent and authoritarian nation, to develop nuclear weapons technologies while starting a war with Iran under the guise of preventing an Iranian nuclear bomb," said Senator Edward Markey, a Democrat. "This deal would make us all less safe."

Senator Jim Risch, a Republican, said he agrees with the kingdom's crown prince that the deal stands to benefit both countries.

Reporting Credits

(Reporting by Timothy Gardner; additional reporting by Patricia Zengerle, Ismail Shakil and Christian Martinez; Editing by David Gregorio and Don Durfee)

Key Takeaways

  • The agreement, formalized by the U.S. Energy Department on July 22 2026, establishes a framework for civil nuclear cooperation between the U.S. and Saudi Arabia, enhancing American technological involvement while emphasizing nonproliferation safeguards (apnews.com).
  • This pact represents a milestone in U.S.-Saudi relations, building on prior memoranda and joint declarations from 2025 that laid the groundwork for energy cooperation and civil nuclear development (energy.gov).
  • Despite reassurances about nonproliferation, experts and lawmakers express concern that provisions on uranium enrichment—a sensitive capability—could weaken traditional safeguards and raise geopolitical risks (apnews.com).

References

Frequently Asked Questions

What agreement did the United States and Saudi Arabia reach?
They reached a nuclear cooperation agreement, as confirmed by the U.S. Energy Department.
Who announced the US-Saudi Arabia nuclear cooperation deal?
The deal was announced by the U.S. Energy Department.
When was the US-Saudi Arabia nuclear cooperation deal reported?
The agreement was reported on July 22.
Who reported on the US-Saudi Arabia nuclear cooperation agreement?
Ismail Shakil and Christian Martinez reported on the development.

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