President Donald Trump has approved an agreement that could permit Saudi Arabia to enrich uranium for its civilian nuclear program. The deal, expected to be announced publicly as early as Wednesday, could last for 30 years and may involve U.S. firms in the development of the program, according to sources familiar with the matter.
Key Details
The agreement is anticipated to allow for the establishment of a uranium enrichment facility in Saudi Arabia following a joint U.S.-Saudi study. However, it is not expected to include the International Atomic Energy Agency's (IAEA) Additional Protocol, which would provide for enhanced monitoring and verification. Critics warn that this could lead to nuclear proliferation in the region.
Background
Trump's relationship with Saudi Arabia has deepened over the years, with the Trump family reportedly entering into at least nine business deals with Saudi investors since the end of his first term, valued at approximately $50 million in 2024 alone. These include licensing agreements for hotels and residential projects in the kingdom. The deal has raised concerns among lawmakers who fear it could enable Saudi Arabia to develop nuclear weapons capabilities, especially amid ongoing tensions with Iran, which has its own nuclear ambitions.
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This development could impact the energy sector, particularly companies involved in nuclear technology and uranium supply, as it raises the potential for increased competition in nuclear capabilities in the Middle East. Investors will watch for the formal announcement of the deal and subsequent congressional review, which could influence market sentiment regarding nuclear energy investments in the region.