Washington could also sweeten any deal by designating Saudi Arabia a Major Non-NATO Ally, a status already given to Israel, the US source said.
Regional sources say that Saudi Arabia will proceed with normalizing relations with Israel regardless of Palestinian opposition.
The Israeli-Palestinian conflict seems to loom over the negotiations for a Saudi-Israeli normalization deal.
Haim Katz is the first Israeli minister to publicly attend a global conference in Saudi Arabia, which does not have diplomatic ties with Israel.
The INSS argues that while Saudi Arabia is requesting a defense pact from the US as part of recent talks, Israel should ask for one as well.
The Israel Policy Forum letter ignores how Saudi normalization will benefit the US and Israel and upset Iran, China, and Russia. That's more important than indulging the Palestinians again.
Readers of The Jerusalem Post have their say.