DUBAI — The Trump administration is backing a nuclear energy agreement with Saudi Arabia that would permit the kingdom to enrich uranium and process spent atomic fuel, according to two sources. The move is raising serious concerns about the potential spread of nuclear weapons technology across an already volatile region.
Washington and Riyadh have spent years negotiating a nuclear cooperation deal that would open the door for Saudi Arabia to access U.S. technology while giving American companies a shot at lucrative contracts to build Saudi nuclear facilities. As with any deal involving atomic technology, fears about weapons proliferation and regional security have been at the center of those discussions.
Like all countries that have signed the nuclear Non-Proliferation Treaty, Saudi Arabia has already pledged not to build a nuclear bomb and has agreed to international inspections. Historically, however, the United States has pushed for additional protections beyond those baseline commitments.
Two sources told Reuters this week that the Trump administration is now prepared to submit the agreement to Congress. But those sources noted the deal does not include what’s known as the “gold standard” — a provision that would bar Saudi Arabia from enriching uranium or processing spent nuclear fuel, both of which can serve as pathways to building a warhead. The agreement also reportedly lacks an “additional protocol” requiring extra international oversight.
Those missing elements are expected to alarm U.S. allies in the Middle East, including Israel, and raise questions about consistency. One of the stated reasons for the U.S. military action against Iran this year was Tehran’s refusal to abandon its own enrichment program. Some members of Congress have previously called for strict guardrails on any such deal, and opposition on Capitol Hill is anticipated.
WHY DOES SAUDI ARABIA WANT NUCLEAR POWER?
At first glance, the world’s largest oil exporter might not seem like an obvious candidate for nuclear energy. But Saudi Arabia is aiming to cut carbon emissions and free up more crude oil for export as part of Crown Prince Mohammed bin Salman’s Vision 2030 economic development plan.
According to the U.S. Energy Information Administration, 68% of Saudi electricity was generated by burning natural gas in 2024, with the remaining 32% coming from burning oil. During the peak month of June, the kingdom was using 1.4 million barrels of crude per day just for power generation.
Nuclear energy could replace some of that consumption — particularly for energy-intensive uses like water desalination and air conditioning — allowing Saudi Arabia to sell more of its oil on the global market instead.
The kingdom has also made statements suggesting that if longtime adversary Iran were to develop a nuclear weapon, Saudi Arabia would feel compelled to do the same. While widely seen as a pressure tactic aimed at Tehran, those statements have also deepened concerns about Saudi Arabia’s own nuclear ambitions.
It’s worth noting that many countries that operate nuclear power plants do not enrich uranium domestically, instead importing enriched fuel for their reactors. But in January 2025, Saudi Arabia announced it would enrich uranium itself — a process with potential military applications — to produce what’s known as “yellowcake” fuel for power generation, which it also intends to sell.
WHAT DOES THE U.S. STAND TO GAIN?
For the United States, the potential benefits are both strategic and commercial.
Civil nuclear cooperation was previously used as an incentive in efforts by Trump’s predecessor to broker a normalization agreement between Saudi Arabia and Israel. Those two issues have since been separated, Reuters has reported, though a nuclear deal could still serve as a diplomatic sweetener with the kingdom. Saudi Arabia has made clear it will not normalize relations with Israel without the establishment of a Palestinian state.
U.S. Energy Secretary Chris Wright met with Saudi Energy Minister Prince Abdulaziz bin Salman last year and said the two nations were on “a pathway” to a civil nuclear agreement, making no mention of broader diplomatic issues like normalization.
A finalized deal would position U.S. companies at the front of the line to build Saudi nuclear power plants and would give Washington a window into the kingdom’s atomic program — potentially easing concerns about weapons development.
Under Section 123 of the U.S. Atomic Energy Act of 1954, the United States can negotiate significant civil nuclear cooperation agreements with other nations. Those agreements must meet nine nonproliferation requirements designed to prevent the recipient country from using the technology to build nuclear weapons or pass sensitive materials to others. Any such pact is also subject to congressional review.
SAUDI ARABIA HAS OTHER OPTIONS
Even if the U.S.-Saudi deal falls apart, several other countries with established nuclear industries are waiting in the wings.
China’s state-owned nuclear company reportedly submitted a bid in 2023 to build a nuclear plant in Saudi Arabia. Russia’s state nuclear firm, which constructed a nuclear facility in Egypt, has also signed preliminary cooperation agreements with Riyadh. South Korea, which built reactors in the neighboring United Arab Emirates, and France are also considered potential contenders.
Which country ultimately wins the contract will likely depend on technology, financing, geopolitical alignment, and conditions related to how nuclear fuel is handled.
THE ENRICHMENT QUESTION
A central sticking point is whether Washington would agree to build a uranium enrichment facility on Saudi soil, when that might happen, and whether Saudi personnel would have access to it — or whether it would be operated exclusively by U.S. staff in what’s called a “black box” arrangement.
Without strong safeguards written into the agreement, Saudi Arabia — which has uranium ore reserves within its borders — could theoretically use an enrichment facility to produce highly enriched uranium, which can be refined into material suitable for nuclear weapons.
One source told Reuters that the proposed agreement creates a legal framework for cooperation on the nuclear fuel cycle, including uranium enrichment, but does not require Washington to actually transfer any related technology or capabilities to the kingdom.
Adding another layer of complexity, Israel — the top U.S. ally in the region — has repeatedly spoken out against the idea of a Saudi civil nuclear program, making the diplomatic path forward even more complicated.
