Saudi Arabia is reportedly in talks with the Trump administration for a defense agreement that mirrors last month’s U.S.-Qatar pact, which commits Washington to view any attack on the Gulf nation as a threat to “American peace and security.”
Pact Expected During Crown Prince’s Visit
The potential defense deal, which encompasses expanded military and intelligence cooperation, is expected to be finalized during the upcoming visit of Crown Prince Mohammed bin Salman to the White House next month, the Financial Times reported on Friday.
The Crown Prince would arrive just weeks after President Donald Trump signed an executive order in late September, promising to respond to any attack on Qatar with “lawful and appropriate measures.” This order was a response to Israel’s missile attack on Doha, targeting Hamas’s political leaders and causing concern among oil-rich Gulf nations who look to Washington for security.
Last month, Saudi Arabia inked a "strategic mutual defense" pact with Pakistan, indicating the kingdom's intent to broaden its security partnerships.
Saudi-US Ties Follow Major Regional Economic Moves
Saudi Arabia has committed $600 billion in investment into the United States, which Trump hailed as a “golden era” of U.S.-Middle East economic cooperation.
In May, Saudi Arabian Mining Company (Ma’aden) entered into a deal with MP Materials (NYSE:MP) to establish an integrated rare earth supply chain in Saudi Arabia. Signed during the U.S.-Saudi Investment Forum 2025 in Riyadh, the deal highlights both governments’ commitment to securing critical mineral supply chains.
Firas Maksad, Washington-based managing director for the Middle East and North Africa at Eurasia Group, told the Financial Times that the proposed Saudi Arabia-U.S. defense deal is “much more robust than what already exists.”
Price Action: A few stocks to focus on amid the potential deal are Lockheed Martin Corp (NYSE:LMT), Northrop Grumman Corp (NYSE:NOC), and General Dynamics Corp (NYSE:GD). On a year-to-date basis, their stock climbed 2.28%, 27.98% and 26.66%, respectively.
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
