The US and Saudi Arabia are expected to announce a deal that will allow the Gulf kingdom to develop a civilian nuclear programme, according to US media reports.

An announcement is expected from US President Donald Trump’s administration on Wednesday, US officials were cited as saying.

The agreement could be worth billions of dollars to the US, whose companies could be involved in building a facility to produce enriched uranium, which can be used as fuel for power plants but also to make nuclear bombs.

Nuclear experts and former officials in Israel – the US’s top ally in the Middle East – have voiced concern that the plan could ultimately lead to Saudi Arabia being able to develop a nuclear weapon.

The BBC has asked the White House for comment.

The US media reports say that, under the terms of the arrangement, after undertaking a joint study with the US, Saudi Arabia may be allowed to enrich uranium on its soil to produce fuel at a US-built enrichment facility instead of relying on imported fuel.

That provision would distinguish this agreement from another one that was struck by the US in 2009 with Saudi Arabia’s neighbour, the United Arab Emirates, under which the UAE does not produce its own fuel and accepts a host of other restrictions.

For that reason, the agreement is also expected to attract the concern of nuclear non-proliferation campaigners, whose ultimate aim is to prevent an increase in the number of nuclear weapons worldwide.

The nuclear issue has been at the centre of the months-long US-Israeli conflict with Iran. The two nations say one of the reasons they attacked Iran in February was to prevent the country from ever developing a nuclear weapon – something that Tehran denies planning to do.

Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, told CBS News in 2018 that his own nation was not planning to acquire a nuclear weapon, but that “without a doubt if Iran developed a nuclear bomb, we will follow suit as soon as possible”.

The US-Saudi deal due to be unveiled on Wednesday has already been approved by Trump and will last 30 years, according to the Wall Street Journal.

If the US objects to enrichment taking place in Saudi Arabia following the joint study, the kingdom would not be allowed to do so on its own or with another foreign partner for 10 years, the newspaper says.

The plan will now be sent to the US Congress. Some lawmakers on both sides of the political aisle are also expected to oppose the deal, though Trump’s Republican Party controls both the upper and lower chambers.

The US-Saudi deal has not been made contingent on the Saudis normalising diplomatic ties with Israel, the New York Times reports. The push for Saudi-Israeli normalisation has been an aspiration of successive US presidents.

The Bab al-Mandab Strait, a 32km-wide (20-mile) waterway located between south-western Yemen and the Horn of Africa. It connects the Gulf of Aden with the Red Sea, which is linked to the Mediterranean by the Suez canal.

Soon after the start of the Gaza war in October 2023, the Houthis began attacking merchant vessels in the Red Sea and Gulf of Aden with missiles, drones and small boats, saying they were acting in support of the Palestinians.

Four ships were sunk, nine crew members were killed, and commercial traffic through Bab al-Mandab hit a record low as shipping companies rerouted their vessels around southern Africa.

Although the Houthis paused their attacks in response to the Gaza ceasefire last October, the number of transits through the strait has yet to return to previous levels, according to data from the International Monetary Fund.

In response to the situation in the Strait of Hormuz, Saudi Arabia has diverted more than 70% of its crude exports to the Red Sea port of Yanbu.

About 4 million barrels per day (bpd) have been shipped from there in recent weeks, compared with about 973,000 bpd a year earlier, according to data from Kpler and Signal Ocean.

Total petroleum volumes transiting Bab al-Mandab also rose to 7.4 million bpd in June, or about 7% of global output.

Mohammed Albasha of the US-based risk advisory firm Basha Report said it was not yet clear whether the Houthis would begin targeting vessels heading to Saudi Arabia.

“Even if no ships are attacked, the announcement alone is likely to disrupt shipping and create uncertainty for Saudi ports. Whether the Houthis move from threats to direct action remains the critical issue,” he told Reuters news agency.

On top of this, the government had also offered to cover some out-of-pocket expenses resident doctors face, including exam fees, as well as increase the number of training posts to address what the BMA has described as a jobs shortage at the start of year three of their training.

Romania is undergoing a dramatic transformation in its defense sector. Backed by a Foreign Military Financing (FMF) loan from the U.S. Department of State, approved in September 2024, the country is investing billions in modernizing its military and establishing itself as a regional production hub for heavy ammunition and advanced combat platforms. At the heart of this initiative is a dual-pronged strategy: importing cutting-edge American military hardware and building local industrial capacity to manufacture NATO-standard munitions.

This move isn’t just about national defense. It’s about Romania’s emergence as a strategic player on NATO’s eastern flank—an increasingly vital position given the ongoing war in Ukraine and rising tensions with Russia. At stake is the security architecture of Eastern Europe and the resilience of NATO’s logistical and industrial base.

On May 17, 2025, Romania’s Chamber of Deputies Defense Committee gave the green light to a landmark acquisition: 54 M1A2 SEPv3 Abrams main battle tanks. The deal, valued at $2.53 billion, was initially authorized by the U.S. government in November 2023. With this approval, Romania becomes the latest European NATO member to adopt the Abrams platform, aligning its armored forces with those of the U.S., Poland, and other frontline allies.

The M1A2 SEPv3 is not just any tank—it is currently one of the most advanced main battle tanks in the world. Designed by General Dynamics Land Systems, it incorporates lessons learned from decades of armored warfare, most recently in Iraq and Afghanistan. Its 120mm M256 smoothbore cannon is capable of firing the latest kinetic energy penetrators (M829A4) and programmable AMP (Advanced Multi-Purpose) rounds, giving Romanian forces a flexible and lethal main gun platform.

Additional firepower comes from a 12.7mm heavy machine gun operated via the CROWS remote weapon station and a coaxial 7.62mm machine gun. This combination provides superior fire superiority in both urban and open terrain.

What sets the SEPv3 variant apart is its survivability. The tank features upgraded armor, including provisions for the Israeli Trophy active protection system, which has proven effective at intercepting incoming anti-tank missiles. Third-generation thermal sights, digital command architecture, and smart munition data links round out its suite of battlefield tech.

“This is a game-changer for Romania’s land forces,” said Lt. Gen. (ret.) Mircea Cazacu, a defense analyst based in Bucharest. “It places our military on a different level—one that meets NATO’s highest standards and is prepared for high-intensity conflict.”

While the tank deal headlines Romania’s military modernization, what’s happening behind the scenes in its defense industry may be even more consequential. Alongside the Abrams acquisition, Romania has launched a co-production initiative with the United States focused on two types of heavy ammunition: 120mm tank rounds and 155mm artillery shells. These munitions are not only critical for Romania’s own forces but are also in high demand across NATO due to the protracted war in Ukraine.

On May 28, 2025, the U.S. Embassy in Bucharest confirmed that Romanian Minister of Economy Bogdan Ivan signed two Letters of Request (LOR) to begin joint production efforts. The initiative is being financed through the U.S. FMF loan framework and involves both technology transfer and infrastructure development.

The goal is clear: to develop sovereign capacity for the testing, certification, and mass production of these key munitions. Romanian production lines are expected to manufacture conventional 155mm shells—including high explosive, smoke, and illumination variants—as well as more advanced guided types like the M982 Excalibur. For 120mm ammunition, the focus is on ensuring logistical compatibility with the newly acquired Abrams tanks.

“This isn’t just about local needs,” said Ioan Bujor, a former procurement official at the Romanian Ministry of Defense. “It’s about making Romania a pillar in the NATO supply chain—especially now that Western arsenals are depleted.”

Since Russia’s full-scale invasion of Ukraine in 2022, the war has consumed unprecedented volumes of artillery and armor-piercing rounds. NATO doctrine once assumed a relatively modest pace of fire for conventional engagements. But Ukraine has rewritten those assumptions, with Ukrainian and Russian forces alike burning through thousands of rounds per day.

The result? Stockpiles across Europe and North America have been severely drained, prompting an urgent push to ramp up production capacity. But defense manufacturing doesn’t scale overnight. It requires long-term investment, skilled labor, secure supply chains, and political will.

This is where Romania enters the picture. With its geographic location near the Black Sea and the Ukrainian border, Romania is ideally situated to serve as both a logistical waypoint and an industrial rear for NATO operations. Its relatively low production costs and existing defense infrastructure make it an attractive site for co-production ventures.

Already, NATO and the EU are working on broad initiatives to decentralize ammunition production across Europe. Romania’s projects align closely with these efforts and may receive additional EU funding or operational integration down the line.

Romania’s military industry, long seen as underutilized and outdated, is being reenergized by these new investments. State-owned firms such as Romarm and its subsidiaries are being tapped to house the new production lines, with upgrades planned for facilities in Cugir, Sadu, and Dragomirești.

One facility in particular—the Uzina Mecanică Cugir plant—is expected to handle 120mm ammunition. Meanwhile, 155mm artillery shells may be produced in Dragomirești, where new high-tech forging and ballistics labs are under development. These facilities will work closely with U.S. partners to ensure compliance with NATO standards.

“Our objective is full cycle capability,” said Minister Ivan in a recent press briefing. “We want to produce, test, certify, and deploy ammunition entirely on Romanian soil. That is how you achieve strategic autonomy.”

There’s also a knock-on effect. As Romania builds out its defense ecosystem, local subcontractors—from logistics firms to electronics manufacturers—stand to benefit. This could revitalize parts of the industrial base that have struggled since the post-Cold War era.

Romania’s moves are not happening in isolation. They reflect a broader strategic shift within NATO, which is rediscovering the importance of industrial depth and national stockpiling. The days of assuming short, low-intensity wars are over.

NATO Secretary General Jens Stoltenberg has repeatedly emphasized the need for sustainable defense production. In that context, Romania’s initiative is being closely watched in Brussels and Washington alike.

There’s also a geopolitical message embedded in these actions. By choosing the U.S. as a key partner and embracing NATO interoperability, Romania is signaling its unwavering alignment with the Western security bloc. In return, it is likely to gain influence within both NATO and EU defense decision-making bodies.

Moreover, these efforts serve as a counterweight to Russian influence in the Black Sea region. With Moldova to its east and Ukraine just across the border, Romania’s stability and capacity have broader regional implications.

Of course, ambitious plans come with challenges. Establishing production lines for heavy munitions requires not only money and materials but also skilled engineers, reliable supply chains, and long-term government commitment. Delays are possible, particularly in certification phases or due to external dependencies like specialized metals or electronic components.

There is also the question of political continuity. Romania faces parliamentary elections in 2026, and while defense modernization enjoys broad support, any change in government priorities could slow momentum.

Then there are export restrictions and intellectual property rules. U.S. defense contractors are protective of their technologies, and while FMF loans encourage cooperation, navigating these waters requires deft diplomacy.

Still, the general mood is one of determination.

“This is a marathon, not a sprint,” said Gen. (ret.) Cazacu. “But Romania is finally running in the right direction.”

Romania is no longer content to be a consumer of security—it is positioning itself as a provider. With a powerful new tank fleet, the launch of critical ammunition production, and strong U.S. backing, the country is stepping into a new role: as NATO’s strategic bulwark on the eastern frontier.

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