Red Carpet Reception in Riyadh
US President Donald Trump began his Middle East tour on Tuesday with a big diplomatic victory, winning a $600 billion investment pledge from Saudi Arabia in the US economy. The revelation followed a lavish reception in Riyadh, where Trump was received by Crown Prince Mohammed bin Salman (MbS) and top Saudi officials.
The pact contains a historic $142 billion in defense sales, the largest arms deal in the history of US-Saudi relations according to the description of the US government. While it is not known if this entails the long-desired Lockheed F-35 fighter jets, their sale is still reportedly being negotiated.
Business Leaders Join the Tour
Trump, joined by top US business leaders such as Elon Musk, OpenAI CEO Sam Altman, and BlackRock CEO Larry Fink emphasized the tour’s focus on trade and economic partnership. Treasury Secretary Scott Bessent and Blackstone CEO Stephen A. Schwarzman also participated in a US-Saudi investment forum.
In the forum, Saudi Investment Minister Khalid al-Falih stressed the expanding universe of US-Saudi partnerships outside oil, complimenting the increasing investment space under Vision 2030, MbS’ economic diversification initiative.
Focus on Deals, Not Diplomacy
Unlike his 2017 trip, Trump is not scheduled to visit Israel, a move that has raised questions in Tel Aviv about the country’s standing in current US foreign policy. Observers suggest Trump’s priority is on striking major investment deals rather than delving into regional security or mediation.
Nevertheless, Israel’s war in Gaza casts a shadow over the trip. Frustration among the US is increasing at the ongoing violence, as Israeli military attacks against Hamas and Hezbollah are regarded as having boosted Trump’s negotiating position vis-a-vis Iran and its allies.
Resumed Negotiations with Iran and Arms Sales
During the weekend, Iranian and US negotiators gathered in Oman to discuss a possible agreement to cap Tehran’s nuclear activities. Trump indicated willingness to consider military action if diplomacy gets stuck. Meanwhile, Saudi Arabia can anticipate a fresh arms package of more than $100 billion to support the strategic alliance.
A Shift Toward Economic Statecraft
Trump’s representative Steve Witkoff sounded hopeful that America would be able to extend the Abraham Accords, which normalized relations between Israel and a number of Arab states, in the near future. For the moment, Trump’s Middle East policy is straightforward advance American economic interests and assert US leadership through smart investment diplomacy.
