Trump Adds Abraham Accords Condition to US-Saudi Nuclear Pact

President Donald Trump on Friday made a U.S. civil nuclear energy deal with Saudi Arabia contingent on the kingdom normalizing diplomatic relations with Israel. The new condition introduces a significant geopolitical hurdle to an agreement aimed at developing Saudi Arabia's first commercial nuclear reactors.

New Condition Links Energy to Diplomacy

Speaking to reporters in the Oval Office on Friday, July 24, President Trump confirmed the new stipulation. "In order to do it, they have to be a member of the Abraham Accords," he stated, according to Reuters. This public declaration followed a social media post by the president on Thursday where he first added the condition.

The statement came just two days after the U.S. Department of Energy announced that Energy Secretary Chris Wright and his Saudi counterpart, Prince Abdulaziz bin Salman, had signed an agreement on nuclear development. Trump noted that he did not discuss the accords with Secretary Wright before the deal was signed but insisted, "it was always understood, and Chris knew, and Saudi Arabia knew."

Context of the Agreement

The push for a U.S.-Saudi nuclear deal, which would also tie the kingdom to the Abraham Accords, was a policy pursued by the previous Biden administration as well. The Abraham Accords are a series of U.S.-brokered agreements to normalize relations between Israel and several Arab nations.

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Saudi Arabia has thus far declined to join the accords, maintaining its long-held position that it would not recognize Israel without an irreversible path to a Palestinian state. As of Friday, Saudi officials had not responded to requests for comment on Trump's new condition for the nuclear pact.

Market and Corporate Implications

A finalized nuclear energy agreement between the U.S. and Saudi Arabia is widely expected to benefit American and allied companies. Specifically, the deal is seen as a significant potential contract for Westinghouse, a nuclear power company.

Westinghouse is co-owned by Canadian firms Cameco (CCJ) and Brookfield Asset Management (BAM). The successful implementation of the deal would represent a major commercial opportunity for these entities, but the new diplomatic linkage to the Abraham Accords adds a layer of uncertainty to the timeline and ultimate viability of the project.