Saudi Arabia puts Israel deal on ice amid war, engages with Iran, sources say

Saudi Arabia is putting U.S.-backed plans to normalise ties with Israel on ice, two sources familiar with Riyadh's thinking said, signalling a rapid rethinking of its foreign policy priorities as war escalates between Israel and Palestinian group Hamas.

The conflict has also pushed the kingdom to engage with Iran. Saudi Crown Prince Mohammed bin Salman took his first phone call from Iranian President Ebrahim Raisi as Riyadh tries to prevent a broader surge in violence across the region.

The two sources told Reuters there would be a delay in the U.S.-backed talks on normalisation with Israel that was a key step for the kingdom to secure what Riyadh considers the real prize of a U.S. defence pact in exchange.