August 29, 2026

Reuters: Western officials says that Saudi Arabia has backed down from the condition of a Palestinian state in exchange for normalization with Israel

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Saudi Arabia has abandoned its plan to sign a comprehensive defense treaty with the United States in exchange for normalizing relations with Israel, and is instead seeking a limited military cooperation agreement, two Saudi and Western officials said.

According to a Reuters report, Saudi Arabia has backed away from its previous demand for a Palestinian state as a condition for normalization, and has instead demanded that Israel publicly commit to a two-state solution.

But Saudi and Western sources revealed that Saudi Crown Prince Mohammed bin Salman made recognition of Israel conditional on it taking real steps towards establishing a Palestinian state, especially in light of the current military escalation in Gaza.

Diplomatic sources explained that Israeli Prime Minister Benjamin Netanyahu is still enthusiastic about normalizing relations with Saudi Arabia, considering it a historic achievement that will enhance his acceptance in the Arab world.

However, Netanyahu is facing intense domestic pressures that prevent him from making any concessions to the Palestinians, especially after the recent events in Gaza.

Sources indicated that Riyadh and Washington are working to reach a more limited defense agreement before the end of President Joe Biden’s term next January.

This agreement includes expanding joint military training and maneuvers to confront regional threats, especially from Iran, in addition to enhancing defense cooperation between American and Saudi companies and ensuring that the Kingdom doesn’t cooperate with China.

The new agreement could include boosting Saudi investments in advanced technologies, particularly anti-drone systems, and expanding the US presence in the kingdom through training, logistical support, and cybersecurity.

However, the agreement will fall short of a mutual defense treaty that would require the United States to protect Saudi Arabia in the event of an attack.

One American source explained that there are doubts about the possibility of reaching an agreement in the remaining time, indicating that the Kingdom is still interested in obtaining security guarantees and advanced weapons, but it’s not clear whether it prefers to complete this during the Biden administration or wait for a new administration.

A Saudi official confirmed that the negotiations were 95% complete, but Riyadh decided to discuss an alternative to the full defense agreement because it couldn’t be implemented without normalizing relations with Israel.

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