US to Announce Civilian Nuclear Deal with Saudi Arabia as Iran Tensions Flare

The United States is set to announce a landmark civilian nuclear agreement with Saudi Arabia on Wednesday, according to media reports. The deal aims to help the kingdom establish a civilian nuclear programme, with provisions potentially allowing US companies to build a uranium enrichment facility in Saudi Arabia.

This development comes amid renewed hostilities between the United States and Iran, a conflict partly rooted in concerns over Tehran's nuclear programme. The Iran nuclear issue remains a key point of contention in stalled talks between the two countries.

The New York Times reported on Tuesday, citing two unidentified US officials, that the Trump administration planned to formally sign and announce the deal. The agreement, spanning 30 years, is expected to provide billions of dollars for the US nuclear industry, according to the administration.

However, the deal faces opposition from both Republican and Democratic lawmakers, as well as Israeli officials, who fear that Saudi Arabia's civilian nuclear project could be converted to develop nuclear weapons. Saudi Arabia has long insisted on its right to pursue a civilian nuclear programme.

The agreement is expected to be submitted to Congress in the coming days, though its approval is not required for it to go through. Washington has sought to link any nuclear deal with Saudi Arabia to a broader strategic framework, including normalisation of ties with Israel and a US defence pact.

The United States previously signed a nuclear agreement with the United Arab Emirates in 2009, though the UAE does not enrich its own uranium. In May, a drone struck a generator near the UAE's Barakah nuclear plant, the only such facility in the Arab world, causing a fire.

Policymakers have long feared that if Iran produced a nuclear weapon, it could trigger a nuclear arms race across the Gulf region. Meanwhile, US Secretary of State Marco Rubio declined to confirm the Saudi deal on Wednesday but dismissed proliferation concerns. 'The US is not going to reach any agreement with any country in the world that leads to the risk of proliferation,' he told reporters in Manila.

Renewed fighting between the United States and Iran has raised fears of further regional destabilisation. Iran's Yemeni allies, the Houthi rebels, have threatened to expand the war by blockading Saudi ports, potentially disrupting crude oil supplies to international markets. Saudi Arabia and the Houthis exchanged fire last week, threatening a 2022 truce, though the rebels have largely remained on the sidelines since the Middle East conflict escalated on February 28.