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Prospects of Saudi Ties to Israel Elusive as Trump Seeks $1 Trillion Bonanza
Saudi Crown Prince Mohammed bin Salman attends the 45th Gulf Cooperation Council (GCC) Summit in Kuwait city, Kuwait, Dec. 1, 2024. Photo: Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS
When US President Donald Trump lands in Riyadh on Tuesday, he will be greeted with opulent ceremonies, gilded palaces and the prospect of $1 trillion in investments. But, the raging war in Gaza has denied him one goal he has long craved: Saudi-Israel normalization.
Behind the scenes, US officials are quietly pressing Israel to agree to an immediate ceasefire in Gaza – one of Saudi Arabia’s preconditions for any re-start of normalization talks, said two Gulf sources close to official circles and a US official.
Trump’s Middle East envoy Steve Witkoff told an audience at the Israeli embassy in Washington this week that he imminently expected progress on expanding the Abraham Accords, a set of deals brokered by Trump in his first term under which Arab states including the UAE, Bahrain, Sudan and Morocco recognized Israel.
“We think we will have some or a lot of announcements very, very shortly, which we hope will yield progress by next year,” Witkoff said in a video of his speech. He is expected to accompany Trump on his visit to the Middle East.
However, opposition by Israeli Prime Minister Benjamin Netanyahu to a permanent stop to the war or to the creation of a Palestinian state make progress on similar talks with Riyadh unlikely, two of the sources said.
Saudi Arabia does not recognize Israel as legitimate, meaning the Middle East’s two most advanced economies and military powers do not have formal diplomatic ties. Supporters of normalizing relations say it would bring stability and prosperity to the region, while countering Iran’s influence.
Establishing ties has become especially toxic for Saudi Arabia, the birthplace of Islam, since the start of Israel’s war in Gaza.
As such, the issue, central to bilateral talks in Trump’s first term, has effectively been de-linked from economic and other security matters between Washington and the kingdom, according to six other sources Reuters spoke with for this story, including two Saudi and two US officials. The people all asked to remain anonymous to speak about sensitive diplomatic conversations.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, needs the Gaza war to end and a credible path to a Palestinian state “before he re-engages with the issue of normalization,” said Dennis Ross, a former US negotiator.
In the meantime, Washington and Riyadh will focus Trump’s trip largely on the economic partnership and other regional matters, according to the six sources. Lucrative investments such as major deals in arms, mega-projects and artificial intelligence are in play, officials from both sides stressed.
The approach was cemented in diplomatic talks between Saudi and US officials ahead of the trip, the first formal state visit of Trump’s second term, they said.
Trump’s stated aim is to secure a trillion-dollar investment in US companies, building on an initial commitment of $600 billion pledged by the crown prince.
The wealthy kingdom, the world’s top oil exporter, knows the ritual well: dazzle the guest, secure the favor. The goal, the sources told Reuters, is to evade diplomatic landmines and perhaps, one said, to win concessions from Trump on the Gaza war and its aftermath.
“The Trump administration wants this trip to be a big deal. That means lots of splashy deal announcements and collaborations that can be sold as being good for America,” said Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute, a think tank in Washington.
“Normalizing ties with Israel is a much heavier lift than rolling out the red carpet for President Trump and announcing investment deals,” he said.
A State Department spokesperson declined to comment on any understanding reached ahead of the trip, saying Trump “will look to strengthen ties between the United States and our Arab Gulf partners during the visits.”
The Saudi government communications office did not reply to a request for comment.
COURTING THE KINGDOM
Before Hamas launched its Oct.7 attacks on Israel – killing 1,200 people and sparking the devastating Israeli offensive into Gaza – the crown prince was finalizing a landmark diplomatic agreement: a US defense pact in exchange for Riyadh recognizing Israel.
Frustrated by the impact of Gaza’s prolonged crisis on normalization efforts, Trump could use his visit to unveil a US framework to end the 18-month war, the two Gulf sources said.
The plan could create a transitional government and new security arrangements for post-war Gaza – potentially reshaping regional diplomacy and opening the door to future normalization talks, they said.
Underscoring the high-stakes diplomacy underway, Trump met privately with Israeli Strategic Affairs Minister Ron Dermer on Thursday to discuss the war and nuclear talks with Iran, Axios reported.
The US State Department did not immediately respond to questions about Trump’s discussions on Gaza.
Trump conspicuously has not announced a visit to Israel as part of his tour of the region. Two diplomats noted the US president has recently refrained from talking about his “Gaza Riviera” plan that enraged the Arab world with the suggestion of resettling the entire Gazan population and US ownership of the strip.
In the build up to the trip, Washington has taken a number of actions that are positive for Saudi Arabia. An agreement to stop US bombing of the Houthis in Yemen is in line with a Saudi ceasefire there. Washington has also de-linked civil nuclear talks from the normalization question.
The stalled Saudi-US defense pact, initially conceived as a formal treaty, was revived in the scaled back form of security guarantees late in the Biden presidency to bypass congressional opposition.
The Trump administration has now picked up those talks, along with the discussions about a civilian nuclear agreement, three of the sources said, while cautioning that it will take time to define terms.
CHINA INFLUENCE
Trump’s Saudi trip is his first formal state visit and second foreign trip since his re-election, after attending the pope’s funeral in Rome. He will also visit Qatar and the United Arab Emirates.
Beneath the showmanship of Trump’s visits, diplomats say, lie also a calculated US effort to reassert influence and reshape economic alignments in a region where Beijing – Washington’s chief economic rival – has steadily expanded its foothold at the heart of the petrodollar system.
Trump’s first trip abroad in his first term also began in Riyadh, where he unveiled $350 billion in Saudi investments.
Trump commands deep trust from the Saudi leadership, rooted in the close ties during his first term – a period defined by large arms deals and steadfast US backing for Bin Salman, even as global outrage erupted over the killing of columnist Jamal Khashoggi by Saudi agents in Istanbul.
Saudi Arabia and its Gulf allies now plan to urge Trump to ease U.S. regulations that have increasingly deterred foreign investment, particularly in sectors deemed part of America’s “critical national infrastructure,” five industry sources said.
In meetings with U.S. officials, Saudi ministers will advocate for a more business-friendly climate, especially at a time when China is aggressively courting Gulf capital, the industry sources said.
While countering China’s economic rise may top Trump’s foreign policy agenda, it won’t be easy in Saudi Arabia. Since the launch of Vision 2030, China has become integral to the kingdom’s plans, dominating sectors from energy and infrastructure to renewables.
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Switzerland Moves to Close Gaza Humanitarian Foundation’s Geneva Office Over Legal Irregularities
Palestinians carry aid supplies received from the US-backed Gaza Humanitarian Foundation in the central Gaza Strip, May 29, 2025. Photo: REUTERS/Ramadan Abed/File Photo
Switzerland has moved to shut down the Geneva office of the Gaza Humanitarian Foundation (GHF), a US- and Israeli-backed aid group, citing legal irregularities in its establishment.
The GHF began distributing food packages in Gaza in late May, implementing a new aid delivery model aimed at preventing the diversion of supplies by Hamas, as Israel continues its defensive military campaign against the Palestinian terrorist group.
The initiative has drawn criticism from the UN and international organizations, some of which have claimed that Jerusalem is causing starvation in the war-torn enclave.
Israel has vehemently denied such accusations, noting that, until its recently imposed blockade, it had provided significant humanitarian aid in the enclave throughout the war.
Israeli officials have also said much of the aid that flows into Gaza is stolen by Hamas, which uses it for terrorist operations and sells the rest at high prices to Gazan civilians.
With a subsidiary registered in Geneva, the GHF — headquartered in Delaware — reports having delivered over 56 million meals to Palestinians in just one month.
According to a regulatory announcement published Wednesday in the Swiss Official Gazette of Commerce, the Federal Supervisory Authority for Foundations (ESA) may order the dissolution of the GHF if no creditors come forward within the legal 30-day period.
The Trump administration did not immediately respond to requests for comment on the Swiss decision to shut down its Geneva office.
“The GHF confirmed to the ESA that it had never carried out activities in Switzerland … and that it intends to dissolve the Geneva-registered branch,” the ESA said in a statement.
Last week, Geneva authorities gave the GHF a 30-day deadline to address legal shortcomings or risk facing enforcement measures.
Under local laws and regulations, the foundation failed to meet several requirements: it did not appoint a board member authorized to sign documents domiciled in Switzerland, did not have the minimum three board members, lacked a Swiss bank account and valid address, and operated without an auditing body.
The GHF operates independently from UN-backed mechanisms, which Hamas has sought to reinstate, arguing that these vehicles are more neutral.
Israeli and American officials have rejected those calls, saying Hamas previously exploited UN-run systems to siphon aid for its war effort.
The UN has denied those allegations while expressing concerns that the GHF’s approach forces civilians to risk their safety by traveling long distances across active conflict zones to reach food distribution points.
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Key US Lawmaker Warns Ireland of Potential Economic Consequences for ‘Antisemitic Path’ Against Israel
US Sen. James Risch (R-ID) speaks during a Senate Foreign Relations Committee hearing, Washington, DC, May 21, 2024. Photo: Graeme Sloan/Sipa USA via Reuters Connect
Senate Foreign Relations Committee Chairman James Risch (R-ID) issued a sharp warning Tuesday, accusing Ireland of embracing antisemitism and threatening potential economic consequences if the Irish government proceeds with new legislation targeting Israeli trade.
“Ireland, while often a valuable U.S. partner, is on a hateful, antisemitic path that will only lead to self-inflicted economic suffering,” Risch wrote in a post on X. “If this legislation is implemented, America will have to seriously reconsider its deep and ongoing economic ties. We will always stand up to blatant antisemitism.”
Marking a striking escalation in rhetoric from a senior US lawmaker, Risch’s comments came amid growing tensions between Ireland and Israel, which have intensified dramatically since the Hamas-led attacks on southern Israel on October 7, 2023. Those attacks, in which roughly 1,200 Israelis were killed and more than 200 taken hostage, prompted a months-long Israeli military campaign in Gaza that has drawn widespread international scrutiny. Ireland has positioned itself as one of the most vocal critics of Israel’s response, accusing the Israeli government of disproportionate use of force and calling for immediate humanitarian relief and accountability for the elevated number of Palestinian civilian casualties.
Dublin’s stance has included tangible policy shifts. In May 2024, Ireland formally recognized a Palestinian state, becoming one of the first European Union members to do so following the outbreak of the war in Gaza. The move was condemned by Israeli officials, who recalled their ambassador to Ireland and accused the Irish government of legitimizing terrorism. Since then, Irish lawmakers have proposed further measures, including legislation aimed at restricting imports from Israeli settlements in the West Bank, policies viewed in Israel and among many American lawmakers as aligning with the controversial Boycott, Divestment, and Sanctions (BDS) movement.
While Irish leaders have defended their approach as grounded in international law and human rights, critics in Washington, including Risch, have portrayed it as part of a broader pattern of hostility toward Israel. Some US lawmakers have begun raising the possibility of reevaluating trade and diplomatic ties with Ireland in response.
Risch’s warning is one of the clearest indications yet that Ireland’s policies toward Israel could carry economic consequences. The United States is one of Ireland’s largest trading partners, and American companies such as Apple, Google, Meta and Pfizer maintain substantial operations in the country, drawn by Ireland’s favorable tax regime and access to the EU market.
Though the Trump administration has not echoed Risch’s warning, the remarks reflect growing unease in Washington about the trajectory of Ireland’s foreign policy. The State Department has maintained a careful balancing act, expressing strong support for Israel’s security while calling for increased humanitarian access in Gaza. Officials have stopped short of condemning Ireland’s actions directly but have expressed concern about efforts they see as isolating Israel on the international stage.
Ireland’s stance is emblematic of a growing international divide over the war. While the US continues to provide military and diplomatic backing to Israel, many European countries have called for an immediate ceasefire and investigations into alleged war crimes.
Irish public opinion has long leaned pro-Palestinian, and Irish lawmakers have repeatedly voiced concern over the scale of destruction in Gaza and the dire humanitarian situation.
Irish officials have not yet responded to The Algemeiner’s request for comment.
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Israel Condemns Iran’s Suspension of IAEA Cooperation, Urges Europe to Reinstate UN Sanctions
Israeli Foreign Minister Gideon Saar at a press conference in Berlin, Germany, June 5, 2025. REUTERS/Christian Mang/File Photo
Israeli Foreign Minister Gideon Saar on Wednesday condemned Iran’s decision to halt cooperation with the UN’s nuclear watchdog and called on the international community to reinstate sanctions to curb Tehran’s nuclear ambitions.
“Iran has just issued a scandalous announcement about suspending its cooperation with the IAEA (International Atomic Energy Agency),” Saar wrote in a post on X. “This is a complete renunciation of all its international nuclear obligations and commitments.”
Last week, the Iranian parliament voted to suspend cooperation with the IAEA “until the safety and security of [the country’s] nuclear activities can be guaranteed.”
“The IAEA and its Director-General are fully responsible for this sordid state of affairs,” Iranian Foreign Minister Abbas Araghchi wrote in a post on X.
The top Iranian diplomat said this latest decision was “a direct result of [IAEA Director-General Rafael Grossi’s] regrettable role in obfuscating the fact that the Agency — a full decade ago — already closed all past issues.
“Through this malign action,” Araghchi continued, “he directly facilitated the adoption of a politically-motivated resolution against Iran by the IAEA [Board of Governors] as well as the unlawful Israeli and US bombings of Iranian nuclear sites.”
The Parliament of Iran has voted for a halt to collaboration with the IAEA until the safety and security of our nuclear activities can be guaranteed.
This is a direct result of @rafaelmgrossi‘s regrettable role in obfuscating the fact that the Agency—a full decade ago—already…
— Seyed Abbas Araghchi (@araghchi) June 27, 2025
On Wednesday, Iranian President Masoud Pezeshkian approved a bill banning UN nuclear inspectors from entering the country until the Supreme National Security Council decides that there is no longer a threat to the safety of its nuclear sites.
In response, Saar urged European countries that were part of the now-defunct 2015 nuclear deal to activate its “snapback” clause and reinstate all UN sanctions lifted under the agreement.
Officially known as the Joint Comprehensive Plan of Action (JCPOA), this accord between Iran and several world powers imposed temporary restrictions on Tehran’s nuclear program in exchange for sanctions relief.
During his first term, US President Donald Trump withdrew from the deal and reinstated unilateral sanctions on Iran.
“The time to activate the Snapback mechanism is now! I call upon the E3 countries — Germany, France and the UK to reinstate all sanctions against Iran!” Saar wrote in a post on X.
“The international community must act decisively now and utilize all means at its disposal to stop Iranian nuclear ambitions,” he continued.
The time to activate the Snapback mechanism is now!
I call upon the E3 countries- Germany, France and the UK to reinstate all sanctions against Iran!
Iran has just issued a scandalous announcement about suspending its cooperation with the IAEA (International Atomic Energy…— Gideon Sa’ar | גדעון סער (@gidonsaar) July 2, 2025
Saar’s latest remarks come after Araghchi met last week in Geneva with his counterparts from Britain, France, Germany and the European Union’s Foreign Policy Chief Kaja Kallas — their first meeting since the Iran-Israel war began.
Europe is actively urging Iran to reengage in talks with the White House to prevent further escalation of tensions, but has yet to address the issue of reinstating sanctions.
Speaking during an official visit to Latvia on Tuesday, Saar said that “Operation Rising Lion” — Israel’s sweeping military campaign aimed at dismantling Iran’s nuclear capabilities — has “revealed the full extent of the Iranian regime’s threat to Israel, Europe, and the global order.”
“Iran deliberately targeted civilian population centers with its ballistic missiles,” Saar said at a press conference. “The same missile threat can reach Europe, including Latvia and the Baltic states.”
“Israel’s actions against the head of the snake in Iran contributed directly to the safety of Europe,” the Israeli top diplomat continued, adding that Israeli strikes have set back the Iranian nuclear program by many years.
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