Over decades, the United States (U.S.) and Saudi Arabia are key strategic partner. Of late a series of letters of intent has been exchanged between the two countries for the arms deal totalling approximately $ 110 billion immediately, and $ 350 billion. This arms deal, is a move to combat and contest the influence of Iran in the region. The relationship between Iran and the allies of the United States waned, after the U.S. pressurised the countries to discontinue trading oil with Iran. It is anticipated that it could trigger an arm race in the region, and likely to escalate the tensions. Owing to the same, this paper aims to assesses the significance of the arms deal between the US and Saudi Arabia, and, moreover, its implications for Middle East strategic landscape. Concurrently, this paper discusses the U.S. President Trump’s vision to links the economic security with national security in detail. On the backdrop of Saudi Arabia foreign policy goals, the paper also analyses the responses of Iran