The United States and Saudi Arabia took a step toward nuclear cooperation on 22nd July 22 2026, when U.S. Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman signed a Section 123 Agreement. It creates the legal basis for civilian nuclear trade and comes with a bilateral safeguards agreement. Washington presented it as the foundation of a decades-long, multibillion-dollar partnership favouring American companies. 

One day later, however, President Donald Trump introduced a condition that was absent from the original announcement: Saudi Arabia must normalize relations with Israel through the Abraham Accords or “the deal is off.”

One day later, however, President Donald Trump introduced a condition that was absent from the original announcement: Saudi Arabia must normalize relations with Israel through the Abraham Accords or “the deal is off.”

The ultimatum turns what had looked like a completed nuclear framework into a politically conditional bargain, creating uncertainty for Riyadh, Congress, and prospective U.S. suppliers. 

Scope, legal and commercial framework, timeline, and significance

Section 123 of the Atomic Energy Act requires nine nonproliferation criteria, including peaceful-use guarantees, safeguards, physical-security requirements, and U.S. consent rights over enrichment, reprocessing, and retransfers of American-origin material. The agreement does not authorize a reactor by itself; it enables licensing, exports, fuel services, training, and technical cooperation. For Saudi Arabia, the agreement opens the door to American reactors, fuel services, training, and regulatory support. For Washington, it promises exports, jobs, and lasting influence. Cooperation could extend to research and peaceful applications beyond electricity generation. 

The difficult question is uranium enrichment. Unlike the US–UAE “gold standard,” under which Abu Dhabi renounced enrichment and reprocessing, the Saudi agreement may leave that door open. Washington and Riyadh could study enrichment inside the kingdom, perhaps using tightly controlled American technology or a sealed “black box” system. That might reduce the risk, but enrichment on Saudi soil would still carry serious proliferation implications. 

READ: Trump says Saudi nuclear deal will be subject to Riyadh joining Abraham Accords

The agreement is expected to last roughly 30 years. Saudi Arabia must choose technology, sites, financing, and suppliers while expanding regulatory capacity. Large reactors require years of licensing and construction, while most........

© Middle East Monitor