- 21 minutes ago
Statecraft examines a 30-year US-Saudi civilian nuclear agreement that could permit uranium enrichment for a civilian programme. The bulletin outlines the involvement of US firms, congressional review and concerns that the pact could weaken established non-proliferation safeguards or encourage similar demands across West Asia. It also presents the administration’s case that American oversight would restrict access to sensitive technology and keep the programme peaceful.
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00:00Can one nuclear deal reshape West Asia and can a country keep getting bailout after bailout by
00:06making itself indispensable? Tonight, two stories about power and strategy. Donald Trump wants to
00:11give Saudi Arabia civilian nuclear technology. Supporters call it a masterstroke. Critics say
00:17it weakens decades of nuclear safeguards. Then Pakistan asks Washington for another 10 billion
00:23dollars after helping mediate the US-Iran talks. After years of IMF rescues and terror financing
00:29concerns, is this peace diplomacy or the same old playbook? One story could change the region.
00:35The other asks whether the world ever learns. Hello and welcome. You're watching Statecraft
00:40with me, Geeta Mohan. All this and more. But first up, the headlines.
00:45As West Asia crisis deepens, US Secretary of State Marco Rubio met India's External Affairs
00:49Minister Jay Shankar in Manila on the sidelines of the ASEAN Foreign Minister's meeting and
00:55the Quad Foreign Minister's meeting. Both ministers discussed recent developments in West
00:59Asia and the Inter-Pacific. Rubio called Iran's attacks on merchant vessels in the Strait
01:03of Hormuz unacceptable, while Tehran continues its retaliatory strikes on Bahrain, Kuwait and
01:09Jordan. Aman, however, said it had shut down four Iranian drones. Earlier, Trump had threatened
01:14to strike Iranian nuclear site called Pickaxe Mountain pretty soon and very heavily.
01:20I believe that Iran has moved nuclear centrifuges into Pickaxe Mountain. And when you say we're
01:26not done yet, what is left to finish? We'll be hitting that area very probably pretty soon.
01:32And there's not a thing they can do about it. Normally, I wouldn't say that. If I thought
01:37they could do something about it, I would never say that. But we'll be hitting that area pretty
01:41soon and very heavily. World Bank's chief economist Indramit Gill warned an escalating conflict in West
01:49Asia could bring down the global economic growth to just 1.3 percent in 2026, less than half of last
01:56year's 2.9 percent if conflict continues for six months or longer. OpenAI said an autonomous agent
02:03powered by its advanced AI models went rogue during a security test and triggered a hack that compromised
02:10the infrastructure of AI startup hugging face last week. In a blog post, OpenAI said it was testing the
02:16capabilities of some of its most advanced models in a controlled environment, but that the agent managed
02:22to escape. Amid crisis in West Asia and with the Strait of Hormuz becoming a growing flashpoint
02:28between U.S. and Iran, Indian Foreign Minister S. Jai Shankar met U.S. Secretary of State Marco Rubio.
02:34Both ministers met in Philippines, capital Manila, on the sidelines of the Association of South
02:39East Asian Nations Foreign Minister's meeting and the Quad Foreign Minister's meeting as well.
02:45Jai Shankar later in a tweet said the focus was on areas which are priority for India-U.S. comprehensive
02:51global strategic partnership, including trade and tariffs, energy, defence and security,
02:57critical minerals and artificial intelligence. He also added the talks with Rubio included regional,
03:03global and multilateral issues of mutual interest. The meet comes after U.S. bipartisan senators
03:09introduced a legislation on the 15th of July which if passed would impose tariffs of up to 100% on
03:16exports from five countries namely India, China, Slovakia, Hungary and Azerbaijan that continue to buy Russian oil.
03:25The world is extremely turbulent and it is increasingly evident that no single nation or even grouping can
03:34deal with it on its own. In this era of volatility and disruption, the most visible stress is on supply
03:41chains. Energy, food and health security can no longer be taken for granted. Because we are all so
03:49dependent on maritime trade, that too could become a source of anxiety. Observing international law in that
03:58regard is therefore vital. As the world tackles disruption in global energy supplies due to the
04:04partial closure of the Strait of Hormuz and large number of seafarers struck and are stuck and merchant
04:10vessels are under attack. Rubio also met foreign ministers of Japan, India, Australia and South Korea. The
04:17meet is also crucial amid earlier suggestions from Indonesia's finance minister Purwaya Yudhi Sadeva of imposing toll on
04:25ships passing through the Malacca Strait, inspired by Iran's plan to charge ships in the Strait of Hormuz.
04:32Filipino activists clashed with anti-riot police, meanwhile protesting the visit of U.S. Secretary of
04:38State Marco Rubio. Activists were prevented from approaching the venue where the meetings were being
04:43held. The protesters called the U.S. to end its involvement in regional conflicts and accused Washington
04:49of fueling tensions in the Asia-Pacific region. Rubio also met Chinese Foreign Minister Wang Yi in
04:56Manila. The meet is seen as an important diplomatic step days after President Trump in his primetime
05:02address blamed China for his 2020 election loss. Earlier, Rubio on his arrival had condemned China's
05:09dangerous and aggressive quote-unquote actions against Philippine naval personnel in the South China Sea.
05:16During a meeting of Southeast Asian foreign ministers, Rubio said the United States is still
05:22willing to negotiate an end to the Iran crisis, but Tehran is not serious about talks as the
05:27widening conflict disrupted two of the world's most critical energy choke points.
05:33Unfortunately, so far, even though we have reached agreements, they have not kept their commitments.
05:37And as the president stated earlier today, I guess, yes, today Washington time, yesterday our time here.
05:44Now, the problem we're having right now is that they're not serious about talks. If they're serious,
05:49we're serious. If they're not, then we will do what is necessary to protect that, our interests and
05:54also the interests of our allies. We create a precedent in the Middle East where a nation state can decide
06:00that they are going to control an international waterway, charge a toll, and if you don't pay them,
06:04blow up your ships, we have created a very dangerous precedent which will repeat itself
06:09in other parts of the world, including in this region.
06:12Has the U.S. war on Iran become unaffordable for President Trump? The U.S.'s military campaign
06:18against Iran is reportedly becoming more prolonged and expensive than initially anticipated.
06:23During a Senate Appropriations hearing, Secretary of War Pete Hexith tagged the price of war at $37.5
06:31billion. The hearing was marked by sharp criticism from Democratic lawmakers over the administration's
06:38strategy on Iran and claims about Iran's nuclear facilities being completely obliterated.
06:43Maa Shwetalala with this report.
06:58The U.S.-Iran conflict has exceeded days and weeks. A war which the U.S. claimed could be finished
07:06in days and weeks is now taking a heavy toll not only on Iran but also on the United States.
07:13The U.S.
07:14Secretary of War Pete Hexith has put forth an estimate of $37.5 billion for the approval of
07:21the Congress. Hexith, who appeared before the Senate Appropriations Committee on Tuesday,
07:29confirmed the price tag on the U.S. war on Iran. He, along with Chairman of the Joint Chiefs of
07:35Staff,
07:35Dan Kane answered questions about the request for a $1.5 trillion U.S. defense budget. Pentagon is seeking
07:43an additional $87 billion from Congress with about $67 billion earmarked for military operations in the
07:51Middle East. Do you have a new estimate about what the war has cost us so far in this, the
07:57fifth month of the first year of this war in Iran?
08:01Senator, the estimate we have as of today is $37.5 billion.
08:06And is the current activity which we have been told about the exchange of fire back and forth
08:12in Iran an indication that that number is going to go up in the months ahead?
08:17Some of that number captures additional O&M, mill pay, and other that would be anticipated through
08:21the fiscal year. So some of that anticipates what costs would be going out in the future as well.
08:25So the new number you've given me is what?
08:29$37.5 billion.
08:31And that represents the cost of the war through what period of time?
08:35Through now for certain aspects of it, but also mill pay, O&M, other anticipated costs through
08:41September 30th, Senator.
08:44The hearing comes days after three U.S. servicemen were killed in operation in Jordan and one in Iraq.
08:50So far, the death toll of U.S. servicemen has risen to at least 17, while more than 100 have
08:57been injured
08:58since early July.
09:00Earlier, the Pentagon had estimated the cost to the U.S. at $11.3 billion in its first week.
09:07On May 12th, the estimate was around $29 billion.
09:11But as Democrat lawmakers opposed Trump's unhinged declaration of war on Iran,
09:17amid growing fuel prices and rising inflation back home, the hearing could not have been expected
09:23to go smooth. Many lawmakers confronted the Secretary of War, opposing government's earlier claims that
09:30Iran's nuclear facilities were completely obliterated.
09:36I will tell you how I use the word failure, because I use the word failure to their leaders.
09:41You, sir, are the failure, not the men and women who are on that front line,
09:45not the men and women who hold up their honor with distinction. But if there's a lack of a winning
09:52strategy, they're in harm's way. Their leaders have failed them. And that's what's happening.
09:56We have political leadership, you. You don't have a strategy. You don't have a long-term plan to
10:01actually win this war. Win the war. The men and women are going to be able to do it,
10:06but they need to have leadership. When will you show leadership?
10:09Of course we have leadership. When will you show leadership?
10:10Why don't you show some leadership and stand up for your fellow Democrats who won't fund the troops,
10:14who stand and play partisan politics while you don't give us the money.
10:17You want to stand up here and talk about the troops? You won't show any political courage
10:20to actually fund our department, because you have Trump derangement syndrome
10:24and can't actually commit to anything meaningful. So I put this on you, Senator.
10:28Secretary Hegseth, you have trillions. You have over a trillion dollars. You're asking for one
10:33and a half trillion dollars. It's not a question of money. It's a question of leadership and understanding
10:39what it takes to actually win. Political cowardice of Democrats who won't fund the troops.
10:48We will have order.
10:54But Hegseth faced criticism not only from lawmakers, but also from protesters who interrupted during the
11:01hearing. They accused the war secretary of bombing children in Iran. The White House has, however,
11:08urged the Congress to approve the budget resolution immediately and without modification. Meanwhile,
11:15the Senate is also likely to consider another war powers resolution aiming to halt the conflict.
11:21With Mahashweta Lala, Bureau Report, India Today.
11:24You want to stand up here and talk about the troops? You won't show any political courage.
11:29Civilian nuclear energy and nuclear weapons are not the same thing, but they do begin at the same
11:34doorstep. That is what makes Donald Trump's latest deal with Saudi Arabia so controversial.
11:40Months after confronting Iran over uranium enrichment, the U.S. President has approved a 30-year
11:46civilian nuclear agreement that could eventually allow Saudi Arabia to enrich uranium under American
11:51supervision. Washington says this is about electricity, investment and energy security.
11:57Critics see something very different. America redrawing one of its oldest nuclear red lines.
12:03This is far more than an energy deal. It is a geopolitical play.
12:07Under the agreement, American companies will build Saudi Arabia's civilian nuclear infrastructure,
12:12including reactors, fuel supply chains and advanced nuclear technology. The biggest winner
12:18is expected to be Westinghouse Electric, whose AP1000 reactor could power entire cities or massive
12:25artificial intelligence data centers. For Saudi Arabia, the goal is simple. Use nuclear power at home.
12:31Export more oil abroad. Earn more revenue. For Trump, the objective is equally clear. Revive America's
12:39nuclear industry while shutting Russia and China out of one of the West Asia's biggest energy markets.
12:46But hidden inside the agreement is one provision that has alarmed nuclear experts. Unlike previous
12:52American nuclear deals, this one does not permanently ban Saudi Arabia from enriching uranium. Instead,
12:59it leaves the door open. And that changes everything. Under the deal, Washington and Riyadh will spend two
13:06years studying whether enriching uranium inside Saudi Arabia makes commercial sense. If both sides agree,
13:13an enrichment facility could be built. But with one major condition, the plant would operate under a highly
13:19secretive American-controlled black box system. Saudi Arabia would use the facility, but would not gain
13:26access to sensitive technology behind it. The Trump administration argues this keeps the program
13:33peaceful while preventing nuclear know-how from spreading. And if Washington ultimately rejects
13:39enrichment, Saudi Arabia cannot pursue it independently or with another country for the next decade.
13:46Even so, critics are not convinced because this agreement breaks with what America once proudly called
13:52its nuclear gold standard. Previous agreements, including America's landmark nuclear deal with the
13:59United Arab Emirates, required partners to permanently give up uranium enrichment and spent fuel reprocessing.
14:06Saudi Arabia refused to accept those conditions. The result is a far more flexible agreement.
14:12It also avoids requiring Riyadh to adopt the International Atomic Energy Agency's toughest inspection regime.
14:19Instead, the deal relies on a customized monitoring system combining basic IAEA safeguards
14:25with bilateral U.S.-Saudi oversight. Supporters call it practical. Critics call it a dangerous precedent
14:33that weakens global non-proliferation norms. And there's another reason this deal is attracting global
14:39attention – timing. Because while Washington pressures Iran to curb its nuclear program, it is simultaneously
14:45allowing Saudi Arabia to move closer to nuclear capability, even if only for civilian purposes for
14:52now. That contradiction is fueling intense debate in Washington. Experts warn that even civilian uranium
14:58enrichment creates what they describe as a latent nuclear weapons capability. Others fear neighboring
15:05countries could now demand similar concessions, triggering a regional domino effect. Trump administration
15:11rejects those concerns. It insists the program will remain under continuous American oversight and that
15:18Saudi Arabia's nuclear ambitions are entirely peaceful. But many still remember Crown Prince
15:23Mohammed bin Salman's 2018 warning that if Iran ever developed a nuclear weapon, Saudi Arabia would
15:30seek one too. The agreement now heads to the U.S. Congress. Lawmakers have 90 days to review it. Blocking
15:37it will not
15:37be easy. Even if Congress votes against the deal, Donald Trump can veto that decision. Overriding his
15:44veto would require a two-thirds majority in both chambers. A very high political hurdle.
15:50Trump calls it a strategic masterstroke. Supporters see jobs, investment, and stronger U.S. influence
15:56in the Gulf. Critics see the erosion of decades of nuclear safeguards. Either way, this is more than a
16:02Saudi energy project. It is a decision that could reshape the balance of power in West Asia, redefine
16:09America's nuclear diplomacy, and influence how the world manages nuclear technology for decades to come.
16:16Pakistan wants another $10 billion from Trump for negotiating the U.S.-Iran peace talks. No, that's not a typo.
16:24Billions have already flowed into Pakistan through IMF programs and international support. Yet, the economy
16:31still gasps for air. Meanwhile, India's warnings about terror financing echo year after year, and even
16:37America once found the world's most wanted terrorist, Osama bin Laden, comfortably hiding inside Pakistan.
16:44Is this payment for peace or another expensive lesson the world refuses to learn?
16:49Pakistan. Because when a country survives on bailout after bailout, it is not about whether it needs
16:54money. It is about why the world keeps reaching for its wallet. Pakistan says it earned this after
17:01helping mediate the Iran talks. But after decades of IMF rescues, FATF scrutiny, and terror allegations,
17:09should Washington really write another check? Pakistan's request itself tells the story.
17:14According to a Reuters report, Islamabad has reportedly asked the U.S. Treasury for a $10 billion
17:21exchange stabilization facility that could support its reserves, steady the Pakistani rupee,
17:26and reduce its dependence on IMF money. The request came right after Pakistan played mediator in the Iran
17:34talks. Diplomacy suddenly looks less like foreign policy and more like a loyalty rewards program.
17:39But here's something obvious. If billions from the IMF couldn't fix Pakistan's economy,
17:45why would another $10 billion suddenly do the trick? Look at the pattern. Pakistan narrowly escaped
17:51default in 2023 with a $3 billion IMF package. Then came another $7 billion IMF program. Add climate-linked
18:00financing, bilateral support, rollovers from friendly countries, and emergency lifelines over decades.
18:07Yet today, Pakistan still needs another rescue. At some point, you stop calling it a temporary bailout.
18:14You call it what it looks like. A business model. Borrow, survive, borrow again.
18:21Pakistan's own borrowing history proves the point. For decades, the country has moved from one rescue
18:27package to another. Cold War aid, IMF programs, bilateral bailouts, market debt. The names changed,
18:34but the script stayed exactly the same. Growth came, crisis followed, another check arrived. It's like
18:41fixing a leaking roof with buckets instead of repairing the roof itself. The buckets keep filling
18:47up. The leak never stops. Is Washington funding peace or writing another blank check to a country with a
18:54very familiar record? Because money never exists in isolation. India has warned for years that Pakistan's
19:01financial ecosystem has repeatedly failed to stop terror financing. Those warnings were not made in a
19:08vacuum. Pakistan spent years on the FATF grey list because of concerns over money laundering and terror
19:15financing. It eventually came off the list after reforms and legal action. But questions about
19:21implementation never completely disappeared. Even FATF noted stronger laws while practical effectiveness
19:28remained mixed. The paperwork improved. The trust never fully returned. And trust becomes even harder
19:36when history refuses to disappear. Remember Abtabad. The US spent years hunting Osama bin Laden across the
19:43world only to find him hiding inside Pakistan. That discovery shattered one of the biggest assumptions in the
19:50global war on terror. America knows this history better than anyone. It lived it. After FATF scrutiny,
19:57after years of terror allegations, after Abbottabad, what exactly has to happen before the world says
20:04enough? India's position has remained remarkably consistent. At the United Nations, New Delhi again
20:10argued that there should be no distinction between good terrorists and bad terrorists. India also called for
20:16stronger action against terror financing and greater international cooperation to ensure no jurisdiction
20:22becomes a safe route for terrorist funding. The message stays simple. A terrorist is a terrorist. No
20:29excuses. No convenient exceptions. Yet Pakistan somehow keeps finding strategic relevance. During the cold war,
20:36geography mattered. After 9-11, security mattered. Now regional diplomacy suddenly matters. Every crisis creates
20:44another reason why Pakistan becomes too important to ignore. That's perhaps Islamabad's greatest diplomatic
20:51skill. Not fixing its structural problems, but convincing powerful countries that those problems can wait
20:58one more time. So is the world rewarding a genuine peacemaker or falling for the same playbook yet again?
21:05The answer depends less on Pakistan's request and more on whether history still matters. Pakistan argues that
21:12another financial lifeline will stabilise its economy. Critics argue that decades of repeated rescues have
21:18produced dependency instead of lasting reform. And hovering over this entire debate remains a question
21:25India has asked for years. If concerns over terror financing continue to cast a shadow, how many more checks does
21:32the
21:32world sign before it finally asks whether the strategy itself needs to change?
21:37Question of Statecraft. Before we go, one of the world's most famous museum galleries has reopened
21:42after a crime that shocked France. The Louvre's historic Apollo Gallery welcomed visitors again this week,
21:49nine months after thieves stole crown jewels worth more than $100 million in a daring seven-minute highest.
21:56While the gallery is once again open to the public, the stolen jewels remain missing and will eventually be
22:02displayed in a new high-security space if recovered. Take a look. Goodbye and take care.
22:42Thank you for listening.
22:42I love you.
23:03Transcription by CastingWords
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