Trump says he will approve sale of F-35 fighter jets to Saudi Arabia

President Trump said he will greenlight a sale of advanced F-35 fighter jets to Saudi Arabia ahead of Crown Prince Mohammed bin Salman’s White House visit, a notable shift in US policy that could make Saudi Arabia the first Arab participant in the F-35 program and deepen Washington‑Riyadh ties. The announcement elevates strategic leverage in Middle East diplomacy but has prompted Israeli political and military objections over erosion of Israel’s long‑standing qualitative military edge and warnings of a regional arms race. The deal would be commercially significant for Lockheed Martin but faces material political risk in Congress—where arms sales can be blocked—and its realization is uncertain given past reversals (notably the UAE approval under Trump that stalled under the next administration).

Analysis

President Trump announced he will greenlight a sale of advanced F-35 fighter jets to Saudi Arabia, speaking at the White House one day before Crown Prince Mohammed bin Salman’s visit; if completed, Saudi Arabia would become the first Arab participant in the F-35 programme and Lockheed Martin would be the prime contractor. The move is framed as part of a broader push to deepen Washington–Riyadh ties and to leverage regional diplomacy around the Abraham Accords, while the administration invoked recent military actions and regional tensions (including a reported letter from Iran’s president) as context for closer U.S.–Saudi security alignment.

Israeli political and security figures have publicly opposed the transfer, warning it could erode Israel’s long-standing qualitative military edge established since 1968 and spark a regional arms race; quotes from Yair Golan and National Security Minister Itamar Ben-Gvir underscore material diplomatic resistance. U.S. statutory and congressional controls remain decisive—Congress can disapprove presidentially authorized sales—and the article notes the 2020 UAE F-35 approval later stalled under the next administration, highlighting precedent for reversal.

Commercial upside for Lockheed Martin is clear if the sale proceeds, but realization faces medium political and regulatory risk (the provided market_impact_score is 0.35 and sentiment is mixed/uncertain). Investors should therefore weigh potential defense-contract revenue against high execution risk from Congressional pushback, Israeli objections, export-control safeguards and possible technical downgrades or offsets that could limit program value.

Key Decisions for Investors

• Wait for formal congressional notifications and export-license approvals before increasing exposure to defense contractors tied to the F-35 program such as Lockheed Martin, as the sale faces material legislative and diplomatic risk
• If already exposed, consider hedging near-term equity risk (options or reducing directional concentration) because the article signals mixed market sentiment and only moderate likelihood of a completed deal
• Monitor three catalysts closely: congressional votes or hold letters, formal DoD/State Department export-control conditions or technical downgrade announcements, and public responses from Israeli leadership — adjust positioning if any of these signals indicate escalation or deal collapse