The United States and Saudi Arabia signed a civilian nuclear cooperation agreement and a bilateral safeguards pact on July 23, 2026. The deal, signed by US Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman, allows Riyadh to build nuclear reactors using US technology and provides a pathway for uranium enrichment.
The agreement marks the end of years of negotiations over civilian nuclear cooperation, a move Moneycontrol describes as a victory for Saudi Arabia that could reshape the Middle East. Under the terms, the kingdom commits to using U.S. firms to supply its reactors, according to The Washington Post.
The 123 Agreement and Uranium Enrichment
Known as a 123 Agreement, the pact establishes the legal framework for a multi-billion-dollar partnership. The en.tempo.co stated that the deal advances priority strategic and economic objectives, specifically including nuclear nonproliferation.
Crucially, the agreement permits Saudi Arabia to enrich uranium and reprocess nuclear waste. While these activities are central to civilian energy, they are also the same processes that can potentially produce material for nuclear weapons. To secure this technology, Riyadh is pivoting its energy strategy; the kingdom intends to use nuclear power to reduce domestic oil consumption and cut emissions. This shift would power energy-intensive services like air conditioning and desalination, allowing Saudi Arabia to leave more crude oil available for export.
Omissions in Safeguards and IAEA Inspections
Despite the nonproliferation goals cited by the administration, the deal contains a significant gap: it does not include an Additional Protocol. Without this protocol, the International Atomic Energy Agency (IAEA), the UN nuclear watchdog, cannot conduct more intrusive inspections on short notice.
The US administration maintains that the agreement complies with the Atomic Energy Act. However, the absence of enhanced inspections has triggered alarms among US allies and lawmakers. The tension lies in the duality of the technology; by granting a pathway to enrich fuel, the US is providing the tools necessary for a nuclear program, while simultaneously limiting the watchdog’s ability to verify that those tools are used exclusively for peaceful purposes.
Congressional Pushback and Regional Stability
The agreement now moves to Congress, where it will take effect unless lawmakers vote to block it within 90 legislative days. Overriding a potential presidential veto would require a two-thirds majority.
Democratic lawmakers have been vocal in their opposition, arguing that the deal incentivizes a regional arms race. Senator Chris Murphy expressed this concern on X, stating that the agreement will set off a nuclear race in the region, further disincentivizing Iran from limiting its own program
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The opposition is rooted in the volatile relationship between Riyadh and Tehran. Saudi Crown Prince Mohammed bin Salman has previously indicated that while the kingdom does not seek nuclear weapons, it would pursue them if Iran acquired one. This creates a precarious security loop where US technology intended for energy could be viewed by adversaries as a shift toward militarization.
Senator Markey further asserted that this deal would make us all less safe
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The Strategic Stakes for Washington
The deal arrives at a moment of heightened regional instability, following recent US-Israel conflict with Iran and persistent Washington concerns regarding Tehran’s nuclear ambitions. By tying Saudi Arabia to US firms for reactor supply, the Trump administration is attempting to lock in long-term economic and strategic dependency.
However, the risk is a perceived contradiction in US foreign policy. Washington seeks to prevent Iranian proliferation while granting Saudi Arabia the very capabilities—uranium enrichment and waste reprocessing—that it discourages in Tehran. The outcome of the 90-day congressional window will determine if this calculated risk becomes a permanent fixture of Middle Eastern geopolitics.
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