President Trump signed a 30-year nuclear cooperation agreement with Saudi Arabia on Wednesday, setting aside longstanding U.S. demands that the kingdom forgo enrichment and reprocessing technology. The deal, which has drawn sharp criticism from nonproliferation advocates, is expected to reshape global energy markets.
What the Deal Changes
For decades, U.S. policy required any country receiving American nuclear technology to pledge not to develop its own enrichment or reprocessing capabilities. That requirement was meant to prevent the spread of weapons-grade material. The new agreement with Saudi Arabia drops those restrictions entirely. The kingdom will now be allowed to enrich uranium and reprocess spent fuel on its own soil, activities that can produce material for nuclear weapons.
The 30-year term is unusually long for such pacts. Most U.S. nuclear cooperation agreements run for 10 to 15 years. The extended timeline gives Saudi Arabia a stable framework to build a civilian nuclear program from scratch, including reactors, fuel fabrication, and waste management.
Proliferation Concerns
Critics inside and outside the government argue the deal undermines global nonproliferation efforts. Saudi Arabia has not signed the Additional Protocol, a voluntary agreement that allows the International Atomic Energy Agency to conduct short-notice inspections. Without that oversight, the risk of diversion to a weapons program increases, they say.
The kingdom has repeatedly said it would seek nuclear weapons if Iran develops them. Iran’s own enrichment program, which has advanced beyond the limits of the 2015 nuclear deal, adds urgency to the concern. The Trump administration has not required Saudi Arabia to rule out a future weapons program as a condition of the agreement.
Energy Market Impact
The deal is expected to accelerate Saudi Arabia’s plans to build 16 nuclear reactors over the next two decades, a project worth an estimated $80 billion. That would free up more of the country’s oil for export, potentially increasing global supply and putting downward pressure on prices. It also positions Saudi Arabia as a competitor in the emerging market for clean energy, since nuclear power produces no carbon emissions.
U.S. companies, including Westinghouse, are likely to bid for reactor construction contracts. The agreement requires that all nuclear material and equipment be used for peaceful purposes, but the absence of enrichment restrictions leaves a loophole that could be exploited.
The deal now heads to Congress, which has 90 days to review and potentially block it. Lawmakers from both parties have already signaled they will hold hearings on the proliferation risks. The outcome of that review will determine whether the agreement takes effect as signed or gets sent back for renegotiation.
