US and Saudi Arabia nearing agreement on security pact, sources say

The Biden administration and Saudi Arabia are finalizing an agreement for U.S. security guarantees and civilian nuclear assistance, even as an Israel-Saudi normalization deal envisioned as part of a Middle East “grand bargain” remains elusive, according to seven people familiar with the matter, APA reports citing Reuters.

A working draft lays out principles and proposals aimed at putting back on track a U.S.-led effort to reshape the volatile region that was derailed by Hamas’ Oct. 7 attack on Israel and the outbreak of war in Gaza, according to two sources who have seen the document.

It appears to be a long-shot strategy that faces numerous obstacles, not least the uncertainty over how the Gaza conflict will unfold.

U.S. and Saudi negotiators have, for now, prioritized a bilateral security accord that would then be part of a wider package presented to Israeli Prime Minister Benjamin Netanyahu, who would have to decide whether to make concessions to secure historic ties with Riyadh, five of the sources said.

“We’re very close to reaching an agreement” on the U.S.-Saudi portion of the package, U.S. State Department spokesperson Matthew Miller said on Thursday, predicting that details could be ironed out “in very short order.”

That part of the plan is likely to call for formal U.S. guarantees to defend the kingdom as well as Saudi access to more advanced U.S. weaponry in return for halting Chinese arms purchases and restricting Beijing’s investment in the country, according to foreign diplomats in the Gulf and sources in Washington.

The U.S.-Saudi security accord is also expected to involve sharing emerging technologies with Riyadh, including artificial intelligence, according to people familiar with the matter.

The terms are expected to be finalized within weeks, a U.S. official said on condition of anonymity.

The conditions that Netanyahu will face to join a broader deal are expected to include winding down the war in Gaza and agreeing a pathway to Palestinian statehood, both of which Netanyahu has steadfastly resisted.

U.S. officials hope Netanyahu will not want to pass up the historic opportunity to open relations with Saudi Arabia, guardian of Islam’s holiest sites, but are mindful of the domestic political pressures he is under, including keeping Israel’s most right-wing government ever from collapsing.

A broader pact giving the world's biggest oil exporter U.S. military protection together with normalization with Israel would unite two long-time foes and bind Riyadh to Washington at a time when China is making inroads in the region.

A normalization deal would also bolster Israel's defenses against arch-foe Iran and give U.S. President Joe Biden a diplomatic victory ahead of the Nov. 5 presidential election.

Overhanging these efforts is Netanyahu’s threat to launch a military offensive in the southern Gaza city of Rafah, where more than a million Palestinians are sheltering, despite U.S. entreaties to refrain from an operation that could mean further heavy civilian casualties.