The State Department has approved a potential sale of Lockheed Martin Corp. (LMT) F-35 Lightning II fighter jets and related products to Saudi Arabia. The deal is estimated at $24.3 billion and is subject to congressional approval.
The proposed agreement includes 48 military aircraft and 49 engines from Pratt & Whitney, a core business segment of RTX Corporation (RTX), along with communications equipment, spare parts, and other support items.
The State Department stated that the proposed sale would strengthen the security of a major U.S. ally and support stability and economic progress in the Gulf.
The Saudi embassy in Washington took to X and welcomed the proposed sale, calling it another step toward strengthening defense cooperation between the two countries.
The proposed F-35 sale reflects the strength and enduring nature of the Saudi-U.S. strategic partnership and the continued advancement of our defense cooperation.
For decades, Saudi-U.S. security cooperation has contributed to regional stability, strengthened our collective… https://t.co/IOurlYEcbl
— Saudi Embassy USA (@SaudiEmbassyUSA) September 18, 2026
Saudi's F-35 Bid Gains Momentum
In November 2025, President Donald Trump announced plans to sell the F-35 fighter jets to Saudi Arabia, potentially reshaping the military dynamics in the Middle East. This announcement came just a day before hosting Saudi Crown Prince Mohammed bin Salman for a day.
Saudi Arabia is seeking two squadrons of fighter jets to modernize its air force and counter regional threats, particularly Iran. Its current fleet includes Boeing Co.'s (BA) F-15s, along with European Tornado and Typhoon fighters, Reuters reported.
The Israel Factor
The F-35 is a stealth fighter jet designed to evade enemy detection, and Israel has operated it for a decade as the only Middle Eastern country with the aircraft.
Trump previously said both Israel and Saudi Arabia are strong U.S. allies and suggested both should have access to top-tier military equipment. Israeli officials indicated they wouldn't object to Saudi Arabia receiving F-35s if Riyadh normalizes relations with Israel under the Abraham Accords.
Last month, Trump sent the civilian nuclear cooperation agreement with Saudi Arabia to Congress for review. However, the progression of this agreement is dependent on Saudi Arabia's participation in the Abraham Accords.
Shares of Lockheed rose about 0.63% to $541.48 premarket on Friday, while RTX climbed around 0.11% to $193.76.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
