US Approves $1.96B Precision Weapons Sale to Saudi Arabia Amid Iran Conflict

Saudi Arabia and United State flags

US Approves $1.96B Precision Weapons Sale to Saudi Arabia Amid Iran Conflict

The United States has approved a proposed weapons sale worth nearly $2 billion** to Saudi Arabia, a move aimed at strengthening the kingdom’s air defence capabilities amid heightened tensions across the Middle East. The US State Department announced on July 15, 2026, that it had authorised the possible sale of military equipment valued at approximately **$1.96 billion, including up to 20,000 Advanced Precision Kill Weapon Systems (APKWS-II) and related support equipment . The announcement comes as security concerns continue to mount in the region, with renewed hostilities between the United States and Iran and escalating tensions between Saudi Arabia and Yemen’s Iran-backed Houthi rebels . According to the State Department, the proposed sale is intended to improve Saudi Arabia’s ability to counter current and emerging threats, enhance the security of its territory, and increase military interoperability with the United States and allied forces .

The proposed package includes 10,000 air-to-air guidance sections and 10,000 air-to-ground guidance sections for the Advanced Precision Kill Weapon System II . The equipment also includes LAU-131 rocket launchers, Mk-152 high-explosive warheads, Mk66 rocket motors, proximity fuzes, practice warheads, spare and repair parts, technical documentation, training equipment, and logistics support services . The APKWS-II is not a missile in the traditional sense. Rather, it is a laser-guidance kit, built by BAE Systems, that converts standard 70mm Hydra unguided rockets into precision-guided weapons . This conversion matters because it takes a rocket that would otherwise fly in a straight, unguided line and gives it accuracy rivaling far more expensive missiles, all while keeping the unit cost somewhere between $15,000 and $22,000 . By comparison, a single AIM-120 AMRAAM air-to-air missile costs approximately $1 million**, while an AIM-9X Sidewinder costs about **$450,000 . The affordability of APKWS-II has turned it into the US military’s weapon of choice for a very specific and increasingly common problem: shooting down cheap, one-way attack drones and low-end cruise missiles without burning through interceptors that cost fifty or a hundred times more than the target they are destroying . According to BAE Systems, the APKWS-II has a maximum effective range of approximately 6.5 kilometres when fired from helicopters and up to 14 kilometres from fixed-wing aircraft, achieving an accuracy of roughly two metres from the designated target . Saudi Arabia is expected to deploy the system on its AH-64E Apache attack helicopters and F-15SA fighter jets .

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The approval comes amid escalating military exchanges across the Middle East. The Iran war began in February 2026 following coordinated US and Israeli strikes on Iran’s nuclear facilities, missile infrastructure, and senior military leadership . Iran responded with sustained waves of ballistic missiles, cruise missiles, and one-way attack drones targeting Israel as well as military infrastructure across the Gulf, including Saudi Arabia . The arms sale also follows a series of Houthi attacks on Saudi territory. On July 13, 2026, the Houthis launched missiles at Abha International Airport in southern Saudi Arabia after the Yemeni government struck Sanaa airport in an attempt to divert a flight carrying a Houthi delegation returning from the funeral of Iran’s Supreme Leader . The Houthis blamed Riyadh for the attack, raising fears of renewed conflict . Just two days before the arms approval, Saudi Arabia said its air defences intercepted ballistic missiles launched by Yemen’s Houthi militia toward the kingdom’s southern regions . The kingdom has spent years fighting Houthi rebels across its southern border, absorbing repeated drone and missile attacks aimed at its territory . This latest request builds directly on a much smaller purchase Saudi Arabia made in March 2025, when the State Department approved a $100 million sale covering 2,000 APKWS-II guidance kits . The jump from 2,000 units to a potential 20,000 signals Saudi Arabia is moving from testing the system in limited numbers toward building a large, sustained stockpile meant to last through years of continued regional tension .

The State Department stated that the proposed sale would “support the foreign policy and national security objectives of the United States by improving the security of a Major non-NATO Ally that is a force for political stability and economic progress in the Gulf Region” . Officials emphasised that the transaction would enhance Saudi Arabia’s ability to deter current and future threats while improving interoperability with US, regional, and NATO forces . The principal contractor for the deal is BAE Systems, based in Nashua, New Hampshire . Implementation will require the assignment of 15 additional US government and 15 US contractor representatives to Saudi Arabia for an extended period to support program and technical reviews, training, and maintenance support . The proposed sale has been forwarded to the US Congress for review, a mandatory step before the transaction can be finalised . Congress has the authority to object to such sales, although major defence deals involving longstanding US allies are often approved. As of July 16, 2026, no congressional leaders or committees have filed formal objections or joint resolutions of disapproval . The State Department noted that the proposed sale “will not alter the basic military balance in the region” .

In a separate move, the State Department also authorised a $484 million Foreign Military Sale to Kuwait for C-17 Sustainment and related equipment . The Kuwait package includes aircraft components, parts and accessories, modification and support equipment, spare and repair parts, ground handling equipment, communications equipment, software support, technical documentation, training, and logistics services . The State Department said Kuwait’s C-17 fleet “directly support[s] US and coalition operations around the world,” underscoring the aircraft’s role in Washington’s military operations .