Saudi Arabia Holds Significant Leverage Over the U.S., Despite Unlikely Use

Saudi Arabia maintains a significant degree of leverage over the United States through various strategic relationships and economic ties. This became evident recently when President Donald Trump demanded that Saudi Arabia recognize Israel as a precondition for implementing their newly signed nuclear energy deal, which was not part of the original agreement. Such demands have led to some unexpected diplomatic tensions between the two nations.

The Kingdom's influence is rooted in its role as the Custodian of the Two Holy Mosques, giving it considerable sway within the international Muslim community, or Ummah. By aligning closely with American foreign policy goals, Saudi Arabia indirectly projects US influence across the Islamic world more effectively than the United States itself could at times. This alignment has been a cornerstone of their relationship since World War II.

Economically, Saudi Arabia's pledge to invest $600 billion into the U.S., announced during President Trump’s visit to Riyadh in May 2025, underscores its financial clout and strategic importance to American interests. A significant portion of this investment, at least $100 billion, is earmarked for the tech industry, helping the US compete with China's technological advancements.

In addition to economic investments, Saudi Arabia has also been a major purchaser of U.S. military equipment. The Stockholm International Peace Research Institute reports that from 2021-2025, Saudi Arabia was the largest client and third-largest importer of American arms globally. This substantial defense spending bolsters the American military-industrial complex.

Saudi Arabia’s role in what has been termed an "Islamic NATO" further cements its strategic importance to U.S. interests in the region. Comprising Saudi Arabia, Pakistan, Egypt, and Turkey, this alliance is expected to advance American security objectives across the Islamic world under a strategy of indirect influence known as "Leading From Behind."

Moreover, Saudi Arabia’s continued use of the petrodollar system prevents the emergence of a potential “petroyuan,” which would challenge U.S. economic hegemony. By maintaining its commitment to pricing oil in dollars, Saudi Arabia helps preserve one of the foundational pillars of American global dominance.

These strategic advantages give Saudi Arabia considerable leverage over the United States, although it is unlikely that Riyadh will choose to wield this power aggressively. The complex and long-standing relationship between the two nations ensures that any significant shifts would be carefully considered and managed to maintain stability in both economic and geopolitical spheres.