The United States plans to announce an agreement with Saudi Arabia on Wednesday that would establish a civilian nuclear program in the kingdom, according to media reports, as renewed hostilities involving Iran-backed Houthi rebels threaten regional stability.

Citing two unnamed US officials, The New York Times reported on Tuesday that the Trump administration is expected to formally sign and unveil the agreement on Wednesday. The administration has said the 30-year deal would generate billions of dollars for the US nuclear industry.

According to The Wall Street Journal, the agreement includes a provision allowing American companies to build a uranium enrichment facility in Saudi Arabia if a joint study determines one is warranted. However, the proposal has drawn opposition from some US lawmakers in both parties and Israeli officials, who argue that a civilian nuclear program could eventually be adapted to support a weapons program.

The agreement is expected to be submitted to Congress in the coming days, although congressional approval is not required for it to take effect.

The announcement comes amid escalating regional tensions. Iran-backed Houthi rebels in Yemen have threatened to blockade Saudi ports following renewed fighting involving the United States and Iran. Saudi Arabia and the Houthis exchanged fire last week for the first time in years, raising concerns over the durability of a 2022 truce. Despite the recent clashes, the Houthis had largely remained on the sidelines since Israel and the United States launched attacks on Iran in late February.