RIYADH, Saudi Arabia — President Donald Trump is opening his four-day Mideast trip on Tuesday by paying a visit to Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, for talks on U.S. efforts to dismantle Iran’s nuclear program, end the war in Gaza, hold down oil prices and more.
The crown prince will fete Trump with a formal dinner and host a gathering of members of the Gulf Cooperation Council, which is made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Saudi Arabia and fellow OPEC+ nations have already helped their cause with Trump early in his second term by stepping up oil production. Trump sees cheap energy as a key component to lowering costs and stemming inflation for Americans. The president has also made the case that lower oil prices will hasten an end to Russia’s war on Ukraine.
But Saudi Arabia’s economy remains heavily dependent on oil, and the kingdom needs a fiscal break-even oil price of $96 to $98 a barrel to balance its budget. It’s questionable how long OPEC+, of which Saudi Arabia is the leading member, is willing to keep production elevated. The price of a barrel of Brent crude closed Monday at $64.77.
“One of the challenges for the Gulf states of lower oil prices is it doesn’t necessarily imperil economic diversification programs, but it certainly makes them harder,” said Jon Alterman, a senior Middle East analyst at the Center for Strategic and International Studies in Washington.
Trump picked the kingdom for his first stop because it has pledged to make big investments in the U.S., but Trump ended up traveling to Italy last month for Pope Francis’ funeral. Riyadh was the first overseas stop of his first term.
The three countries on the president’s itinerary — Saudi Arabia, Qatar and the United Arab Emirates — are all places where the Trump Organization, run by Trump’s two elder sons, is developing major real estate projects. They include a high-rise tower in Jeddah, a luxury hotel in Dubai and a golf course and villa complex in Qatar.
Trump is trying to demonstrate that his transactional strategy for international politics is paying dividends as he faces criticism from Democrats who say his global tariff war and approach to Russia’s war on Ukraine are isolating the United States from allies.
He’s expected to announce deals with the three wealthy countries that will touch on artificial intelligence, expanding energy cooperation and perhaps new arms sales to Saudi Arabia. The administration earlier this month announced initial approval to sell $3.5 billion worth of air-to-air missiles for Saudi Arabia’s fighter jets.
But Trump arrives in the Mideast at a moment when his top regional allies, Israel and Saudi Arabia, are far from neatly aligned with his approach.
Ahead of the trip, Trump announced that the U.S. was halting a nearly two-month U.S. airstrike campaign against Yemen’s Houthis, saying the Iran-backed rebels have pledged to stop attacking ships along a vital global trade route.
