US and Saudis agree terms for Israel normalization – report

The US and Saudi Arabia have, “agreed on the broad contours of a deal for Saudi Arabia to recognize Israel in exchange for concessions to the Palestinians, US security guarantees, and civilian nuclear help,” “The Wall Street Journal” reports citing sources in Washington. The sources believe that the process could be completed within 9-12 months. The report was immediately felt on the markets with the shekel strengthening, after heavy losses over the past week, and the Tel Aviv 35 Index up 1.23%.

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According to the report, Saudi Crown Prince Mohammed bin Salman met with US national security advisor Jake Sullivan in Jeddah two weeks ago for talks on the Israel-Saudi Arabia normalization issue. The Saudi Crown Prince requested US assistance in building a civilian nuclear program as well as security aid.

At the same time, the Saudis are interested in significant Israeli gestures, which would help promote a solution for the Palestinian state. In return, as reported by “Globes”, the Americans are interested in distancing Riyadh from China – following the tightening of relations between Beijing and Riyadh, especially in the infrastructure sector.

“There’s a work plan to explore the elements of what this would be and test the boundaries of what’s possible,” a senior US official told “The Wall Street Journal.” According to the report, the Americans are demanding that Saudi Arabia commit to not allowing any Chinese military bases on their territory, restrict use of Huawei technology in Saudi Arabia and even commit to exclusively use the US dollar for oil sales.

The main problem regarding the Saudi crown prince is the contradictory messages from him. According to the report, senior US officials are working on this issue to bring about an agreement, but bin Salman has already made it clear to his advisors that he will refuse diplomatic relations with Israel on the same lines as the outline agreement signed with the UAE in the Abraham Accords. Moreover, “The Wall Street Journal” reports that the Saudi crown prince is in no hurry to establish relations with Israel due to the current Netanyahu government, which opposes the establishment of a Palestinian state.

A White House spokesperson denied that any agreement had been reached on normalization between Israel and Saudi Arabia, and said that “talks are continuing.” 

Published by Globes, Israel business news – en.globes.co.il – on August 9, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.