The US has signed a landmark nuclear deal with Saudi Arabia that could potentially allow the kingdom to enrich uranium.

In a statement on Wednesday, the US Department of Energy said its secretary, Chris Wright, and his Saudi counterpart, Prince Abdulaziz bin Salman, signed a “peaceful nuclear cooperation agreement”, along with a “bilateral safeguards agreement”.

According to the department, the partnership is expected to expand American nuclear technology exports, create “high-paying” US jobs, and “strengthen America’s energy and national security posture”.

“These agreements reflect our two nations’ shared commitment to strengthening US-Saudi commercial relations, delivering prosperity at home and security to our allies abroad,” Wright said in a statement.

“Rest assured, these agreements uphold the highest standards of nuclear safety and nonproliferation, while relying on the world’s best nuclear technology and scientists, designed right here in the United States. Thanks to President Trump, the American nuclear renaissance is under way and will deliver long-term benefits to the American and Saudi people.”

The deal, which the energy department said would also help “meet Saudi energy needs”, will now be transmitted to Congress for review. It could face pushback from lawmakers concerned about how the deal will be monitored.

In a statement to CBS, Dan Sumner, chief executive of Westinghouse Electric Company – an American nuclear reactor company expected to support Saudi Arabia’s nuclear development – said: “The US government’s announcement to launch a civil nuclear cooperation agreement with Saudi Arabia is a landmark step that strengthens energy security, expands opportunities for US industry and workers, and drives significant long-term economic growth and investment benefits for both countries.”

Although the full details of the deal have yet to be released, it comes at a controversial time, as the US remains engaged in its war with Iran – a conflict that the defense secretary, Pete Hegseth, says has cost $37.5bn so far.

Just a day earlier, Hegseth appeared before the US Senate to request additional funding from the Senate appropriations committee, as the US continues its campaign to prevent Iran from developing uranium enrichment capabilities and obtaining a nuclear weapon.