(MENAFN) According to sources from Saudi Arabia and the US, the major oil-producing nation, Saudi Arabia, is open to increasing its oil production early next year in exchange for a defense agreement with the United States.

A news agency reported on Friday that discussions have been ongoing regarding a potential three-way deal involving Saudi Arabia, the US, and Israel. In this proposed arrangement, Riyadh would formally recognize Israel, and in return, there would be a formal security pact between Saudi Arabia and the United States. This pact would involve the US aiding in the development of a civilian nuclear program in Saudi Arabia and committing to sell substantial quantities of American weaponry to the Gulf nation.

However, negotiations concerning this deal have faced obstacles primarily due to Washington's concerns regarding surging oil prices. The OPEC+ group, consisting of major oil producers like Saudi Arabia and Russia, as well as the Organization of the Petroleum Exporting Countries (OPEC), had agreed last October to implement oil production cuts until the end of 2023. These production cuts have subsequently kept global crude oil prices high and led to an increase in gasoline prices in the United States.

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