US Approves $2.44 Billion Arms Packages for Saudi Arabia and Kuwait Amid Expanding Iran Conflict

KUALA LUMPUR, JULY 2026 – The United States has approved two potential military sales to Saudi Arabia and Kuwait worth a combined $2.44 billion as the conflict involving Washington and Tehran continues to spread across the Middle East.

The US State Department cleared a possible $1.96 billion weapons package for Saudi Arabia, alongside a separate $484 million Foreign Military Sale to support Kuwait’s C-17 transport aircraft fleet. The proposed approvals were announced as Gulf countries faced growing security concerns linked to regional missile and drone attacks.

Saudi Arabia’s proposed package includes up to 10,000 Advanced Precision Kill Weapon System II air-to-air guidance sections and as many as 10,000 additional APKWS-II air-to-ground guidance sections.

The package would also include launchers, warheads, rocket motors, fuses, spare and repair parts, technical documentation, training equipment and logistical support services. BAE Systems, based in Nashua, New Hampshire, has been identified as the principal contractor for the proposed Saudi sale.

APKWS-II technology converts unguided rockets into precision-guided weapons, allowing military aircraft to engage aerial or ground targets with greater accuracy. The proposed acquisition would strengthen Saudi Arabia’s ability to respond to drones, missiles and other short-range threats during a period of heightened regional instability.

Separately, Kuwait requested a $484 million sustainment package for its C-17 military transport aircraft. The proposal includes aircraft components and accessories, modification and support equipment, spare parts, ground-handling equipment, communications systems and software support.

The Kuwait package also covers technical documentation, personnel training, engineering assistance and logistics services intended to maintain the operational readiness of the country’s strategic airlift fleet.

The announcements came as the confrontation between the United States and Iran entered a more dangerous phase. US forces launched new attacks against Iranian coastal defences and missile facilities, while Tehran said it retaliated against American military sites in neighbouring countries, including Kuwait.