U.S. and Saudi Arabia Sign Nuclear Energy ‘123 Agreement’

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The United States and Saudi Arabia have signed the so-called ‘123 Agreement’, a landmark civil nuclear cooperation pact. U.S. Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman finalized the agreement, which is accompanied by a separate bilateral safeguards agreement, according to the U.S. Department of Energy.

A Framework for Strategic Collaboration

The two agreements establish the legal foundation for a multi-billion-dollar, long-term partnership between the two nations. Designed to advance shared economic and strategic priorities, the deal emphasizes strengthening the global nuclear nonproliferation regime while supporting Saudi Arabia’s growing energy needs.

Boosting U.S. Industry and Energy Security

The 123 Agreement grants U.S. companies broader access to Saudi Arabia’s civilian nuclear energy program. Officials say it will bolster the American nuclear industry, create high-skilled jobs, and strengthen domestic supply chains. At the same time, it aims to help meet the Kingdom’s rising electricity demand as it diversifies its energy mix beyond oil.

“These agreements reflect our shared commitment to deepening U.S.-Saudi commercial ties—ensuring prosperity at home and security for our allies abroad,” said Secretary Wright. He emphasized that the deal meets the highest standards of nuclear safety, security, and nonproliferation, built on U.S. expertise and technology.

Wright also credited former President Donald Trump with advancing what he called the “American nuclear renaissance,” saying the collaboration promises long-term benefits for both nations.

Broader Strategic Implications

Beyond energy, the agreement is expected to expand U.S. exports of nuclear technology, reinforce America’s leadership in civil nuclear innovation, and deepen strategic coordination with Riyadh. It also aims to uphold international nonproliferation norms and strengthen U.S. influence in global energy and national security policy.

The agreement now moves to the U.S. Congress for review—a required step under U.S. law. However, it has already drawn concern from some nuclear experts and former Israeli officials, key U.S. allies in the Middle East. They warn that, over time, such cooperation could inadvertently lower barriers to Saudi Arabia pursuing nuclear weapons capabilities—despite current safeguards and commitments.