US and Saudi Arabia Seal Historic Nuclear Deal Allowing Uranium Enrichment, Bypassing Gold Standard
WASHINGTON — July 22, 2026 — The United States and Saudi Arabia have signed a landmark civilian nuclear cooperation agreement that could pave the way for the kingdom to enrich its own uranium, marking a historic shift in U.S. nonproliferation policy and creating potentially billions of dollars in opportunities for American companies.
The deal, formally known as a “123 Agreement” under the U.S. Atomic Energy Act, was signed Wednesday by U.S. Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud. It establishes the legal framework for what the U.S. Department of Energy described as a “decades-long, multi-billion-dollar partnership” and has been transmitted to Congress for a 90-day review period.
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A Revolutionary Shift in Nuclear Policy
The most contentious aspect of the agreement is its departure from the “gold standard” that Washington has historically required of its nuclear partners. The United Arab Emirates, when it signed a similar agreement in 2009, committed to forgoing domestic uranium enrichment and reprocessing of spent nuclear fuel. Saudi Arabia has not agreed to those same restrictions.
According to multiple sources familiar with the deal, the agreement would allow U.S. companies to build a uranium enrichment facility in the kingdom if a joint U.S.-Saudi study determines such a facility is necessary. The agreement also does not include the International Atomic Energy Agency’s Additional Protocol, which would permit intrusive, short-notice inspections of nuclear facilities.
Uranium enrichment produces fuel for civilian nuclear reactors, but the same technology—if pursued to much higher levels—can produce weapons-grade material, making it one of the most sensitive areas of international nuclear cooperation.
US Companies Poised for Multi-Billion Dollar Contracts
The deal is expected to generate major commercial opportunities for American firms involved in reactor construction, nuclear fuel services, and related infrastructure. The U.S. Department of Energy said the agreement would provide “great access” for American companies in the Saudi nuclear program, benefiting U.S. industry, workers, and supply chains.
U.S. nuclear giant Westinghouse, which builds the large light-water reactors Saudi Arabia is seeking, stands to benefit significantly from the deal. The Trump administration recently announced $17.5 billion in loans to accelerate development of 10 new large nuclear reactors designed by Westinghouse, which could use the same design—the AP1000—in the Saudi agreement.
President Donald Trump, who approved the agreement last week, has framed it as a strategic and economic achievement that will strengthen U.S.-Saudi relations while limiting the influence of Russia and China in the Gulf’s energy sector. The Saudi Energy Ministry said the agreement bolsters efforts to diversify energy sources, advance cutting-edge technologies, and expand investment opportunities.
Security Concerns and International Reaction
The agreement has drawn sharp criticism from nonproliferation experts and some lawmakers, who warn that uranium enrichment capability could give Saudi Arabia “a potent source of leverage to extract future concessions from Washington, including new security guarantees, by threatening to weaponize its program,” said Rosemary Kelanic, Middle East director at Defense Priorities.
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Alexander Bollfrass, a nuclear expert at the International Institute for Strategic Studies in London, called the deal “a revolutionary new approach” to nuclear nonproliferation policy, noting that the U.S. is “willing to at least theoretically transfer highly sensitive technology without the same level of oversight that one would expect”.
The agreement has also raised concerns in Israel. Former Israeli prime minister Naftali Bennett described it as a “severe strategic failure” that could endanger Israeli security, warning that “enrichment of nuclear material on Saudi soil could lead to a regional arms race and a dangerous loss of control”.
Iran has also criticized the agreement, arguing it reflects a double standard in U.S. nuclear policy and could encourage a nuclear arms race in the Middle East. The deal comes amid an ongoing military confrontation between the U.S.-Israel alliance and Iran, which was launched in part to dismantle Tehran’s nuclear program.
Congressional Hurdles
The agreement now faces review in the U.S. Congress, where it could encounter opposition from lawmakers concerned about proliferation risks and verification standards. Under U.S. law, the deal will automatically go into effect unless veto-proof majorities in both chambers pass a resolution of disapproval.
Senator Edward Markey, a Democrat, said the deal “would make us all less safe,” arguing that it allows “a belligerent and authoritarian nation to develop nuclear weapons technologies while starting a war with Iran under the guise of preventing an Iranian nuclear bomb”. The Arms Control Association has called on lawmakers to reject the deal to avoid opening “the door for nuclear proliferation in the Middle East even wider”
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