Saudi Arabia is expected to allow Israeli aircraft unrestricted overflights through its airspace as part of a three-way deal also involving Egypt, the Jerusalem Post has reported.

The agreement is expected to be announced during the upcoming visit of US President Joe Biden to the Middle East in late June and will entail the transfer of sovereignty over the Tiran and Sanafir islands from Egypt to Saudi Arabia. Riyadh would then assume Egypt's current commitments stemming from its 1979 peace treaty with Israel - the first Arab state to do so - wherein Cairo undertook to ensure open access to all ships through the Straits of Tiran, a narrow passage between the Gulf of Aqaba and the Red Sea where the two islands are located. Because the sovereignty over the islands, which are currently patrolled by the Multinational Force and Observers, is protected by the Egypt-Israel treaty, the latter has to agree to the transfer and is expected to receive Saudi airspace transit rights in return.

Currently, Israeli aircraft can only cross Saudi Arabia en route to and from Bahrain and the United Arab Emirates, in line with the 2020 Abraham accords. Air India (AI, Delhi International) is also authorised to fly through Saudi Arabia to Tel Aviv Ben Gurion. All other aircraft operated by Israeli airlines, as well as foreign aircraft heading to or from Tel Aviv, have to avoid crossing Saudi Arabia, often adding substantial flight time.

Israel deems the Tiran and Sanafir islands crucial to its national security as they allow control over shipping into the Gulf of Aqaba, the site of Israel's only Red Sea port at Eilat (as well as Jordan's only port in general, Aqaba). The blockade of the Gulf of Aqaba by Egypt in 1967 was one of the reasons for the Six Day War as it effectively cut off Israel from most oil imports.

Saudi Arabia does not currently recognise Israel and does not maintain any official ties with the country.