Riyadh, March 10, 2026 — In an unusually rapid sequence of high-level deliberations, Saudi Crown Prince and Prime Minister Mohammed bin Salman (MBS) has chaired two videoconference sessions of the Council of Ministers within days, as the Kingdom confronts Iranian attacks amid escalating US-Iran hostilities. The meetings come as US Senator Lindsey Graham publicly floated a mutual defence agreement guaranteeing US military protection for Saudi Arabia against any Iranian assault — even as a newly released analysis points to Saudi moves that are quietly dismantling the decades-old economic-security pact that has anchored US-Saudi ties since 1974.
According to official statements from the Saudi Press Agency (SPA), the cabinet sessions — one around March 4 in Jeddah and another on or around March 10 — reviewed “regional developments and their repercussions.” The government strongly condemned Iranian missile and drone attacks on Saudi Arabia, GCC states, and Jordan as “reprehensible and blatant aggression” violating international law. It explicitly affirmed that the Kingdom “will take all necessary measures to safeguard its security and protect its territory, citizens, and residents,” praised Saudi air defences for intercepting threats, and expressed solidarity with affected countries while noting international condemnations of Iran. Additional decisions included progress on the Jafurah gas field, international energy and AI-skill agreements, and designating 2026 as the “Year of Artificial Intelligence” to advance Vision 2030.
The timing has drawn attention amid the broader Iran conflict, which has seen US and Israeli operations, Iranian retaliation (including strikes affecting Saudi territory), the evacuation of the US Embassy in Riyadh, and reported American casualties.
Enter US Senator Lindsey Graham (R-South Carolina), a vocal proponent of stronger action against Iran. In statements on X and Fox News over the past 48 hours, Graham directly addressed Saudi Arabia: “Here’s what I want to say to Saudi Arabia tonight: I’m willing to do a mutual defense agreement with your country to give you protection in perpetuity. If you were attacked by Iran, we would go to war for you.” He framed it as part of a potential binding treaty but simultaneously applied pressure, questioning why the US should proceed with any defense pact if Riyadh refuses to commit its military to the “fight of mutual interest” against what he called the “barbaric and terrorist Iranian regime.” Graham referenced prior US-Saudi arms agreements (including a $142 billion package) and warned of “consequences” for limited Gulf involvement.
In my post on X, @AfzalKTahir I highlighted Graham’s offer while pushing back, arguing that regional states fear Israel more than Iran and that US policy has brought unwanted wars rather than peace. The US went to war without the consent of the GCC, where it maintains military bases that would be part of any such war.
Overlaying these fast-moving security and diplomatic developments is a deeper structural shift in US-Saudi relations — one spotlighted in a YouTube video uploaded today by the channel “History Repeats” titled “IT’S OVER: Saudi Arabia Just Broke the 1974 Deal That Kept America Dominant, Here’s What Happens Next.” The video details the secret 1974 agreement struck in Jeddah between US Treasury Secretary William Simon and Saudi officials: Saudi Arabia would price all its oil in US dollars and recycle petrodollar surpluses into American Treasuries in exchange for US military aid, weapons, and security guarantees. This arrangement, kept confidential for decades and only revealed publicly in 2016 via a Bloomberg FOIA request, replaced the gold standard as the pillar of dollar dominance after Nixon closed the gold window in 1971.
The analysists argues the framework is now eroding: Saudi Arabia’s involvement in BRICS, participation in China-led Project mBridge (a CBDC platform enabling non-dollar, non-SWIFT settlements), and openness to yuan and national currencies for oil trades with partners like China are accelerating de-dollarization. The video frames these as Saudi asserting economic autonomy — precisely at a moment when the security side of the original 1974 bargain is under renewed negotiation amid real Iranian threats.
This convergence of urgent cabinet-level security deliberations, explicit US defence overtures tied to active participation against Iran, and long-term economic diversification paints a picture of Saudi Arabia carefully balancing immediate threats with strategic independence. No formal Saudi response to Graham’s proposal has been issued, and the Kingdom continues to emphasize self-reliant defence capabilities alongside Vision 2030 goals.
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