US plans to announce nuclear deal with Saudi Arabia, media report

The United States plans to announce a nuclear deal with Saudi Arabia on Wednesday that would give the kingdom a civilian nuclear program, according to media reports.

The announcement comes amid renewed fighting between Saudi Arabia and Iran-backed Houthi rebels in Yemen. Two unnamed US officials told the New York Times the Trump administration will formally sign the agreement Wednesday.

What is the nuclear deal between US and Saudi Arabia?

The US-Saudi nuclear deal is a 30-year civilian nuclear agreement that would provide billions of dollars for the US nuclear industry. A provision in the deal would allow American companies to build a uranium enrichment facility in Saudi Arabia, pending a joint study, the Wall Street Journal reported. The agreement marks one of the biggest shifts in US-Saudi energy cooperation in decades.

Why are lawmakers opposed to the deal?

Some US lawmakers from both parties, along with Israeli officials, have voiced opposition to a civilian nuclear program for Saudi Arabia. Their concern centers on fears that the enrichment capability could eventually be converted toward developing nuclear weapons. The deal is expected to be submitted to Congress in the coming days, though congressional approval is not required for it to take effect.

How does the Yemen conflict connect to the deal?

The nuclear deal is being announced as Iran's Yemeni allies, the Houthi rebels, threaten to expand their war with Saudi Arabia. The Houthis announced this week they would blockade Saudi ports, escalating tensions in the region. Saudi Arabia and the Houthis traded fire last week for the first time in years, straining a 2022 truce.

Has the truce between Saudi Arabia and the Houthis held?

The truce had largely held since Israel and the United States attacked Iran in late February, with the Houthis remaining on the sidelines of direct confrontation. Last week's exchange of fire marked a break from that pattern. The timing has raised the stakes around the nuclear deal, which is unfolding alongside a fragile regional security situation.