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US clears nearly $2 billion in precision weapons for Saudi Arabia

The potential deal comes few days after Saudi Arabia and Iran-backed Yemeni Houthi traded fire, ending a four-year truce.

By Agnes Helou on July 16, 2026 8:01 am
APKWS II
U.S. Marines assigned to Marine Aviation Weapons and Tactics Squadron 1 load a 2.75-inch rocket configured with Advanced Precision Kill Weapon System II, a hydra 70 rocket motor and M282 High Explosive Incendiary Multipurpose Penetrator Warhead onto an AH-1Z Viper at Marine Corps Air Station Yuma, Ariz., March 29. (U.S. Marine Corps photo by Lance Cpl. Ashley McLaughlin/Released)

BEIRUT — The US State Department has approved a possible Foreign Military Sale (FMS) of precision guided weapons to the Kingdom of Saudi Arabia in a deal that would be worth an estimated $1.96 billion.

The announcement made Wednesday by the Department of State specified that Kingdom requested 20,000 Advanced Precision Kill Weapon System (APKWS-II) — half of them with air-to-air guidance sections and the other half air-to ground.

Additionally, Saudi Arabia could receive “LAU-131 A/A launchers; Mk-152 high explosive warheads; MK66 rocket motors; proximity fuzes; WTU-1/B practice warheads; inert MK66 rocket motors; test support equipment; launch and employment equipment,” as well as training and spare parts.

The State Department said the proposed sale will “augment Saudi Arabia’s operational aircraft and enhance its air-to-air, and air-to-ground self-defense capability.”

Retired Kuwaiti Air Force Colonel and defense analyst Zafer Al Ajami explained that the kits in question “convert cheap, unguided rockets into precise, low-cost interceptors.”

Using that capability, he told Breaking Defense, “protects expensive Patriot missile stockpiles from being depleted by cheap drone swarms.”

The State Department identified BAE Systems as the prime contractor for the deal, should it go through. Potential FMS announcements are not done deals, and it’s possible the units or dollar figures involved could change as negotiations continue. It’s also always possible lawmakers could step in to halt or significantly alter the deal.

The potential acquisition comes few days after Saudi Arabia and the Iran-backed Yemeni group known as the Houthis traded fire, ending the four-year truce between the two neighboring countries. Riyadh was also targeted by Iranian strikes in response to US and Israeli attacks earlier this year — a conflict that has reignited in the last few days.

“This proposed sale will 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,” the State Department said in the announcement.

Al Ajami called the potential sale a “pragmatic reset in relations” for the US and Saudi Arabia, driven by the Houthi threat in particular.

“By providing cost-effective, precise air-to-air and air-to-ground capabilities, the US directly strengthens Saudi homeland defense and improves battlefield interoperability with American forces in the Gulf,” he said.