Trump Sets Terms for Iran Deal as US Clears $24.3 billion F-35 Sale to Saudi Arabia

US President Donald Trump has insisted that any agreement with Iran must meet Washington’s expectations, as his administration approved a possible $24.3 billion fighter jet sale to Saudi Arabia ahead of expected talks with Gulf leaders on the conflict and its aftermath.

The developments bring two strands of Washington’s Gulf policy into focus: pursuing an agreement with Tehran while strengthening the military capabilities of a key regional partner. Gulf countries hosting American military bases have faced Iranian attacks during the conflict, while disruptions to oil and natural gas exports have hit their economies.

“Iran wants to make a deal; they're not ready, in my opinion. We're gonna either make a deal that's good, or we're not gonna make a deal at all,” Trump told ABC 11.

Saudi Arabia is among six Gulf Cooperation Council countries whose leaders and foreign ministers are expected to meet Trump on the sidelines of the United Nations General Assembly in New York next week. According to Axios, citing three sources, the discussions would focus on Washington’s proposed post-war strategy and the next steps in the Iran conflict.

Ahead of those expected discussions, the US State Department on Thursday approved a potential Foreign Military Sale of 48 F-35 Lightning II aircraft and related equipment to Riyadh. The department said the package would strengthen Saudi Arabia’s homeland defence, help it deter current and future threats and improve its ability to operate alongside US, regional and NATO forces.

The proposed sale comes at a moment when Trump is signalling both an opening for diplomacy and uncertainty over whether Iran is ready to accept an agreement. On Wednesday, he said Washington was moving “towards the end of the war” and claimed the US had heard directly from Tehran that it wanted a deal.

The expected Gulf meeting would give regional governments an opportunity to discuss what comes next. Alongside Saudi Arabia, representatives from the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman are expected to attend. The State Department sent initial invitations on Wednesday, Axios reported, and the gathering could be expanded to include other Arab and Muslim leaders.

For Riyadh, the proposed aircraft package would enhance air-to-air and air-to-ground self-defence capabilities, according to the State Department, which maintained that the sale “will not alter the military balance in the region”.

The $24.3 billion package covers 48 conventional takeoff and landing F-35s, along with 49 Pratt & Whitney engines, including one spare. It also includes secure communications and navigation equipment, electronic warfare database support, simulators, training, software, spare parts and logistics support.

Lockheed Martin Aeronautics and Pratt & Whitney Military Engines would be the principal contractors. The department said implementing the proposed sale would not require additional US government or contractor representatives to be stationed in Saudi Arabia. The approval is for a possible sale, with the supplied announcement giving no delivery timetable.

Trump’s efforts to shape the conflict’s next phase also face pressure at home. The House of Representatives on Tuesday voted 220–204 for a resolution seeking to limit his authority to continue military operations against Iran, with seven Republicans joining Democrats in support.

Introduced by Democratic Representative Seth Moulton, the measure directs the administration to withdraw US forces from hostilities with Iran, except in specified defensive circumstances.

Separately, the House passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which would give the President discretion, subject to its conditions, to impose tariffs of up to 100 per cent on countries continuing to purchase Russian oil and gas.

The expected talks in New York will therefore take place against overlapping pressures: Gulf partners seeking security after attacks and economic disruption, a US administration weighing the terms of an Iran agreement, and lawmakers seeking to constrain further American military involvement.

With inputs from ANI