The United States and Saudi Arabia announced a landmark agreement on Wednesday to launch a civilian nuclear program in the kingdom, with Washington saying the deal incorporates strict non-proliferation measures.

The move comes as the United States, under President Donald Trump, fights a war with Iran that began in part over U.S. concerns about Tehran's nuclear program, an issue that remains a key point of contention in now-stalled talks between the two foes.

"Together, these two agreements lay the legal foundation for a decades-long, multibillion-dollar partnership that advances several priority economic and strategic objectives, including nuclear nonproliferation," the department said in a statement.

A provision in the deal would potentially see U.S. companies build a uranium enrichment facility in Saudi Arabia, The Wall Street Journal reported. The Energy Department's statement made no mention of such a provision, and the department did not comment when asked about it by Agence France-Presse (AFP).

The deal will be submitted to Congress for review, but the Republican-controlled legislature is unlikely to block its implementation.

U.S. lawmakers from both parties and Israeli officials have voiced opposition to a civilian nuclear project in Saudi Arabia over concerns it could eventually be used to develop nuclear weapons.

Saudi Arabia, like Tehran, has long insisted on its right to pursue a civilian nuclear program. Last year, it signed a mutual defense pact with nuclear-armed Pakistan.

Washington has sought in recent years to incorporate any nuclear agreement into a broader strategic framework that would see Saudi Arabia normalize ties with Israel, alongside the signing of a U.S. defense pact.

The United States signed a nuclear cooperation agreement with neighboring United Arab Emirates in 2009, although the country does not enrich its own uranium.

A drone struck a generator near the UAE's Barakah nuclear power plant in May, causing a fire.

Policymakers have long feared that if Iran were to develop a nuclear weapon, it would trigger an arms race across the Gulf.

Speaking in Manila before the deal was formally announced, U.S. Secretary of State Marco Rubio dismissed concerns that it could lead to nuclear proliferation.

"Suffice it to say, the U.S. is not going to reach any agreement with any country in the world that leads to the risk of proliferation," he told reporters on the sidelines of a summit of Southeast Asian foreign ministers.

With renewed fighting between the United States and Iran, concerns are growing that the conflict could further destabilize the region.

Tehran's Yemeni allies, the Houthis, threatened this week to expand the conflict by announcing a blockade of Saudi ports.

The announcement has fueled concerns that such a blockade could threaten the supply of millions of barrels of crude oil to international markets.

Saudi Arabia and the Houthis exchanged fire last week, putting a 2022 truce at risk, although the rebels have largely remained on the sidelines since the Middle East conflict erupted on Feb. 28.

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