American and Saudi officials are discussing terms of treaty that would resemble the military pacts that the U.S. has with its close allies Japan and South Korea.
- Under such an agreement, the U.S. and Saudi Arabia would pledge to provide military support if the other country is attacked in the region or on Saudi territory.
Some speculate that this agreement is essentially an extension of the original 1973 petrodollar deal, where the two countries agreed to price and trade oil in U.S. dollars.