The U.S. is no longer requiring Saudi Arabia to formally recognize Israel in order to move forward on nuclear cooperation talks, according to Reuters.
The move is considered to be a "major concession by Washington."
"Under former President Joe Biden, nuclear talks were an element of a wider U.S.-Saudi deal tied to normalization and to Riyadh's goal of a defense treaty with Washington," Reuters reported.
The United Arab Emirates, Bahrain and Morocco normalized relations with Israel under the Abraham Accords signed during President Donald Trump's first term. Saudi Arabia "has repeatedly said it would not recognize Israel without a Palestinian state."
"Progress towards Saudi recognition of Israel has been halted by fury in Arab countries over the war raging in Gaza," the report said.
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When he visited Saudi Arabia in April, U.S. Energy Secretary Chris Wright said the kingdom and the United States were on a "pathway" to a civil nuclear agreement.
"Riyadh wants to build nuclear generation capacity as it seeks to diversify its economy away from oil," the report said. "Nuclear power could also help free up more crude barrels for export."
Trump is scheduled to travel to the Middle East next week in his first major foreign trip of his second term, with stops in Saudi Arabia, Qatar and the United Arab Emirates.
"This is the second time Trump has chosen Saudi Arabia over the U.S.’ closest neighbors," for his first major international trip.