US-Saudi Nuclear Agreement Permits Domestic Uranium Enrichment Without IAEA Additional Protocol

VG Markets · 2026-07-23T05:57:00Z
US-Saudi Nuclear Agreement Permits Domestic Uranium Enrichment Without IAEA Additional Protocol

The U.S. Department of Energy confirmed on Wednesday that Washington and Riyadh signed a landmark Section 123 civil nuclear cooperation agreement, allowing Saudi Arabia to develop AP1000 nuclear reactors using U.S. technology.

Unlike the United Arab Emirates' 2009 agreement, the framework would permit Saudi Arabia to pursue domestic uranium enrichment and spent-fuel reprocessing under the agreed terms. U.S. Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman signed the agreement alongside a bilateral safeguards arrangement.

Key terms

  1. Agreement duration: approximately 30 years
  2. Estimated value: tens of billions of U.S. dollars
  3. Primary commercial beneficiary: Westinghouse, jointly owned by Cameco and Brookfield Asset Management
  4. Congressional review: 90 legislative session days, during which Congress may consider objections under U.S. law
  5. The agreement does not include the IAEA Additional Protocol, which provides inspectors with broader verification powers and is often described by non-proliferation experts as the international benchmark.
  6. Industry sources said feasibility studies and global reactor construction timelines suggest commercial projects are likely to take several years to develop.

Market reaction

Shares of Cameco rose 1.91% to US$90.37, before extending gains to around US$90.70 in after-hours trading.

Market focus

The agreement comes amid heightened tensions between the United States and Iran over Tehran's nuclear program, prompting criticism from some U.S. lawmakers.

Senator Edward Markey argued the agreement could provide Saudi Arabia with technology that has proliferation implications, while Saudi Crown Prince Mohammed bin Salman has previously said the kingdom would seek nuclear weapons only if Iran were to obtain them.

Investors are likely to monitor the congressional review process and any further developments related to regional security and nuclear policy, as these factors may influence long-term sentiment toward companies involved in the nuclear energy supply chain.

Sources: Reuters, Investing.com, Fortune and The Detroit News. This article is for informational purposes only and does not constitute investment advice.