Skip to content
Back to Guavy Wire
Commodities

Trump's Landmark Deal Gives Saudi Arabia Fast Track to Nuclear Weapons

Instruments
Oil
Share

Donald Trump's administration has signed a landmark deal with Saudi Arabia allowing it to develop a civilian nuclear power program. The agreement, which marks a shift from previous U.S. policy in such deals, allows for in-country enrichment of uranium and does not require the Kingdom to adopt the International Atomic Energy Agency's (IAEA) strict 'Additional Protocol'. This has raised concerns that the deal could be used as a stepping stone for Saudi Arabia to develop nuclear weapons.

The agreement comes after years of tension between the U.S. and Saudi Arabia over oil prices. In 2017, Trump's administration kept pressure on the Kingdom to keep oil prices within the 'Trump Oil Price Range', despite the economic strain this placed on the country. By 2018, oil prices had risen above the range, prompting Trump to remind Saudi of its dependence on U.S. protection.

Israel has historically been wary of a nuclear-armed Saudi Arabia and sees this deal as a key first step in developing nuclear capabilities. The Washington source notes that under the terms of the deal, 'Saudi Arabia leapfrogs the second rung of the ladder' in developing nuclear weapons. With highly enriched uranium in place, the Kingdom could quickly move to having a nuclear weapon with the help of a willing ally.

The U.S. has defended the deal, citing its potential benefits for American firms and as a means of precluding Saudi Arabia from entering into similar deals with China or Russia. The agreement also creates a 'Damoclean Sword' of a U.S.-controlled nuclear threat to Iran on Tehran's doorstep, which could encourage positive future outcomes from the regime.

More on Commodities

Disclaimer: Guavy is a data and market intelligence provider, not an investment advisor. The information, signals, and market analysis provided by the Guavy API and related services are for informational purposes only and are not intended as financial advice, investment recommendations, or an endorsement of any particular trading strategy. Trading in volatile markets, including cryptocurrency, carries significant risk and may not be suitable for all investors. Past performance is not indicative of future results. Users should consult with a qualified financial professional before making any investment decisions. Guavy makes no guarantee of trading profits or financial returns.

Real-time market sentiment intelligence for apps, funds & agents

Location

729 55 Ave SW
Calgary AB T2V 0G4
Canada

© 2026 Guavy Inc