US Approves $2.5 Billion Arms Sales to Saudi Arabia, Kuwait

The United States Department of State approved nearly $2.5 billion in military sales to Saudi Arabia and Kuwait on July 15 and 16, 2026. The largest portion is a potential $1.96 billion sale to Saudi Arabia for up to 20,000 Advanced Precision Kill Weapon System (APKWS-II) guidance sections, launchers, and warheads. BAE Systems will serve as the principal contractor for the Saudi deal, which has been forwarded to the U.S. Congress for review.

Separately, the U.S. authorized a $484 million package for Kuwait, executed by Boeing, to sustain its fleet of C-17 transport aircraft. Washington stated these sales enhance the ability of regional allies to deter threats and improve interoperability with U.S. and NATO forces.

These approvals coincide with a broader U.S. military escalation. The U.S. has reimposed a naval blockade and increased attacks on Iran as the two nations return to war, with some reports alleging Kuwait participated in missile launches toward Iran. Saudi Arabia is facing renewed conflict with Iran-backed Houthis following missile attacks on an airport in Abha.

Concurrent with these approvals, Donald Trump called for the acceleration of U.S. weapons production during the Defense and Innovation Summit in Pennsylvania. Citing high munition consumption in Ukraine and the Middle East, he urged defense executives to expand production capacity to speed up the delivery of advanced systems.