Months of US-led diplomacy to get Saudi Arabia to normalise relations with Israel and recognise the country for the first time were shelved by Riyadh in October in the face of mounting Arab anger over the deadly war in Gaza, which has killed over 27,200 Palestinians in almost four months.
But Saudi Arabia is increasingly keen to shore up its security and ward off threats from rival Iran so the kingdom can forge ahead with its ambitious plan to transform its economy and attract huge foreign investment, two regional sources said.
To create some wiggle room in talks about recognising Israel and to get the US pact back on track, Saudi officials have told their US counterparts that Riyadh would not insist Israel take concrete steps to create a Palestinian state and would instead accept a political commitment to a two-state solution, two senior regional sources told Reuters.
Such a major regional deal, widely seen as a long-shot even before the Israel’s war in Gaza, would still face numerous political and diplomatic obstacles, not least the uncertainty over how the Gaza onslaught will unfold.
A pact giving the world’s biggest oil exporter US military protection in exchange for normalisation with Israel would reshape the Middle East and binding Riyadh to Washington at a time when China is making inroads in the region.
Normalisation is a controversial topic in the region. Morocco, Bahrain and the UAE have faced intense backlash following the establishment of diplomatic ties with Israel in 2020 following the US-brokered Abraham Accords.
Palestinians viewed the move as a “stab in the back” given Israel’s continuous occupation and assault of Palestinian land and people.