Trump aims for $1 trillion investment pact with Riyadh despite tensions

The US president begins a state visit to Saudi Arabia focused on an ambitious economic partnership, sidelining Saudi-Israeli normalisation due to the Gaza war.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

US President Donald Trump is set to begin a state visit to Saudi Arabia with the objective of concluding an investment partnership reaching $1 trillion in strategic American sectors. This initiative, supported by an initial pledge of $600 billion from Crown Prince Mohammed bin Salman, comes amid a tense geopolitical climate, where hopes for normalising relations between Israel and Saudi Arabia remain largely out of reach.

Normalisation talks put on hold

According to several sources close to diplomatic circles cited by Reuters, the ongoing war in Gaza is a major obstacle to any resumption of talks between Riyadh and Tel Aviv. A ceasefire is being demanded by Saudi authorities as a prerequisite, but this condition faces opposition from Israeli Prime Minister Benjamin Netanyahu, particularly on the issue of a Palestinian state.

Despite the framework laid during Trump’s first term through the Abraham Accords, the current situation has led both parties to decouple normalisation from other aspects of their bilateral relations, including economic and security cooperation. The crown prince now requires an end to the Gaza conflict and a credible process toward the creation of a Palestinian state before returning to diplomatic negotiations.

Focus on economic and defence projects

Pre-visit discussions highlighted partnerships in the fields of arms manufacturing, artificial intelligence technologies and large-scale infrastructure projects. The trip also marks the resumption of talks on a US-Saudi security pact, initially envisioned as a formal treaty but now pursued in the form of more flexible bilateral security guarantees.

A civilian nuclear agreement is also on the agenda, according to three diplomatic sources. It aims to bolster Saudi Arabia’s energy capacities while meeting conditions set by the US Congress. The Trump administration seeks to leverage these economic commitments to reinforce US influence in the region and counter China’s growing presence.

Chinese influence and calls for regulatory relief

China has become increasingly embedded in Saudi Arabia’s development plans, notably through the Vision 2030 programme, with targeted investments in energy, infrastructure and renewables. In response to this strategic rivalry, Saudi leaders intend to use Trump’s visit to advocate for easing US regulations that limit foreign investments in sectors deemed critical.

Representatives of the Saudi government plan to urge Washington to adopt a more investor-friendly regulatory framework, particularly to facilitate capital flows from the Gulf. The aim is to attract more funds to the United States as Beijing intensifies efforts to divert this capital toward Asia.

A precedent that shapes expectations

The current visit echoes Trump’s first overseas trip in 2017, which was marked by the announcement of $350 billion in economic commitments between the two nations. According to Robert Mogielnicki, a scholar at the Arab Gulf States Institute, “the priority now is to maximise the economic and diplomatic impact of the trip without upsetting regional sensitivities.”

Trump is not scheduled to stop in Israel during this Middle East tour. Two diplomats also noted the recent absence of references to his controversial proposal to resettle Gaza’s population, a silence seen as strategic ahead of bilateral talks in Riyadh.

Faced with risks to Middle Eastern supply chains, Thai and Japanese refiners are turning to US crude, backed by tariff incentives and strategies aligned with ongoing bilateral trade discussions.
France intercepted a tanker linked to Russian exports, prompting Emmanuel Macron to call for a coordinated European response to hinder vessels bypassing oil sanctions.
The activation of the snapback mechanism reinstates all UN sanctions on Iran, directly affecting the defence, financial and maritime trade sectors.
Commissioner Dan Jørgensen visits Greenland to expand energy ties with the European Union, amid plans to double EU funding for the 2028–2034 period.
European and Iranian foreign ministers meet in New York to try to prevent the reinstatement of UN sanctions linked to Tehran’s nuclear programme.
Canadian Prime Minister Mark Carney announces a bilateral agreement with Mexico including targeted investments in energy corridors, logistics infrastructure and cross-border security.
The US president has called for an immediate end to Russian oil imports by NATO countries, denouncing a strategic contradiction as sanctions against Moscow are being considered.
Tehran withdrew a resolution denouncing attacks on its nuclear facilities, citing US pressure on IAEA members who feared suspension of Washington’s voluntary contributions.
Poland’s energy minister calls on European Union member states to collectively commit to halting Russian oil purchases within two years, citing increasing geopolitical risks.
Athens and Tripoli engage in a negotiation process to define their exclusive economic zones in the Mediterranean, amid geopolitical tensions and underwater energy stakes.
European powers demand concrete steps from Tehran on nuclear issue or United Nations sanctions will be reinstated, as IAEA inspections remain blocked and tensions with Washington persist.
Brussels confirms its target to end all Russian energy imports by 2028, despite growing diplomatic pressure from Washington amid the ongoing conflict in Ukraine.
Donald Trump threatens to escalate US sanctions against Russia, but only if NATO member states stop all Russian oil imports, which remain active via certain pipelines.
The two countries agreed to develop infrastructure dedicated to liquefied natural gas to strengthen Europe's energy security and boost transatlantic trade.
Ayatollah Ali Khamenei calls for modernising the oil industry and expanding export markets as Tehran faces the possible reactivation of 2015 nuclear deal sanctions.
The Ukrainian president demanded that Slovakia end its imports of Russian crude, offering an alternative supply solution amid ongoing war and growing diplomatic tensions over the Druzhba pipeline.
The United States cuts tariffs on Japanese imports to 15%, while Tokyo launches a massive investment plan targeting American energy, industry, and agriculture.
Brazil’s Cop 30 presidency aims to leverage the Dubai commitments to mobilise public and private actors despite ongoing deadlock in international negotiations.
Brasília has officially begun the process of joining the International Energy Agency, strengthening its strategic position on the global energy stage after years of close cooperation with the Paris-based organisation.
During a meeting in Beijing, Vladimir Putin called on Slovakia to suspend its energy deliveries to Ukraine, citing Ukrainian strikes on Russian energy infrastructure as justification.