President Donald Trump announced on Friday that he will withhold moving forward on a civil nuclear agreement with Saudi Arabia unless Riyadh agrees to normalize ties with Israel under the Abraham Accords.
The U.S. Department of Energy earlier this week said that Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman had signed an agreement focused on developing the first commercial nuclear reactors in oil-rich Saudi Arabia, and that the pact would next be submitted to Congress for review.
Trump has pursued a nuclear arrangement with Saudi Arabia since his first term in office. Former President Joe Biden had also advocated for such a deal and sought to attach the condition that Saudi recognition of Israel be tied to the accords. Saudi Arabia has not endorsed the Abraham Accords, citing a demand for an irreversible path to a Palestinian state before it will recognize Israel.
On Thursday, Trump publicly appended the condition via a social media post, saying Saudi Arabia would need to join the accords. He reiterated that stance on Friday in the Oval Office when speaking with reporters: "In order to do it, they have to be a member of the Abraham Accords."
Regarding discussions with Energy Secretary Wright, Trump said he had not spoken with Wright about the accords prior to the Cabinet member signing the agreement. "But it was always understood, and Chris knew, and Saudi Arabia knew," Trump said.
Saudi officials have not responded to requests for comment about the added condition to the deal.
Trump expressed confidence that Saudi Arabia would ultimately accede to the requirement. "At some point they'll join ...and they'll do their civil, to echo it, civil nuclear," he said.
Market observers note that a formalized U.S.-Saudi nuclear deal is widely seen as favorable to Westinghouse, which is co-owned by Canadian companies Cameco and Brookfield Asset Management.
Context and next steps
The Department of Energy's announcement that Wright and Prince Abdulaziz signed an agreement initiates a congressional review process. The additional public condition introduced by the president links progress on the nuclear project to a diplomatic normalization that Saudi Arabia has so far declined to join without specific political concessions related to the Palestinians.
Market implications
Observers and some market participants see potential commercial upside for companies tied to nuclear construction and services if the agreement proceeds. At the same time, the new public condition and the lack of comment from Saudi authorities introduce uncertainty about timing and the likelihood of congressional review leading to implementation.
Reporting limitation: Where the article notes there has been no response from Saudi Arabia, that absence of comment is as reported; no additional responses were available to include.