Energy Secretary Chris Wright and Saudi Prince Abdulaziz bin Salman signed a peaceful nuclear cooperation agreement opening Saudi Arabia to U.S. civil nuclear technology on July 22. The Department of Energy described the multi-billion-dollar, decades-long partnership as one of the largest civil nuclear cooperation deals in U.S. history.
The agreement is a Section 123 Agreement under the Atomic Energy Act, the legal vehicle for U.S. peaceful nuclear cooperation with foreign nations. It establishes commitments regarding uranium enrichment, a key nonproliferation concern given Saudi Arabia’s proximity to Iran and its stated ambition to develop nuclear power.
The partnership carries significant implications for Middle East stability, the global nuclear order and U.S. nuclear exports.
Under U.S. law, Congress has the authority to review Section 123 Agreements and can block them through a joint resolution of disapproval. Congressional reaction will be closely watched, particularly from lawmakers who have expressed concern about nuclear technology transfers to Saudi Arabia.
The nonproliferation dimensions of the agreement are its most sensitive element. Previous U.S. administrations debated whether to require Saudi Arabia to forswear uranium enrichment, a capability that, while legal under international law for peaceful purposes, provides a pathway to weapons-grade material.
For the U.S. nuclear industry, the agreement opens a major export market at a time when the administration is actively promoting nuclear energy expansion domestically and abroad.
The agreement also positions the United States against competitors, including Russia and China, who have pursued their own nuclear cooperation deals with Saudi Arabia.