Politics

State Department to U.S. Firms: Avoid Taliban Business as Ex-Envoy Khalilzad Attends $200M Saudi Oil Deal

The State Department warned American companies that the Taliban remain a designated terrorist group, days after former U.S. envoy Zalmay Khalilzad attended a Kabul signing ceremony for a $200 million Saudi energy deal.

State Department to U.S. Firms: Avoid Taliban Business as Ex-Envoy Khalilzad Attends $200M Saudi Oil Deal

The State Department is warning American companies to steer clear of business deals in Afghanistan, cautioning that many entities presenting themselves as private are in fact tied to the Taliban — a group still designated by Washington as a Specially Designated Global Terrorist organization.

The caution, reported by Radio Free Europe, followed a high-profile trip to Kabul by Zalmay Khalilzad, a former U.S. ambassador to Afghanistan who attended a September 7 signing ceremony for a $200 million oil and gas contract between a Saudi firm and the Taliban government, according to Breitbart News. Khalilzad also met with several senior Taliban officials while in Kabul.

During the event, he described the deal as an “indication that Afghanistan is ready for business,” framing the country as a potential land bridge between resource-rich Central Asia and a South Asia hungry for energy.

State Department Cools the Enthusiasm

The day after Khalilzad’s visit, the State Department moved to distance itself from him, stressing that he holds no U.S. government role and does not speak for Washington.

“The Taliban remain designated as a Specially Designated Global Terrorist (SDGT) group. As such, we urge private companies interested in conducting business in Afghanistan to exercise extreme caution and ensure their transactions comply with applicable US law and regulation,” a State Department spokesperson told RFE.

The $200 million contract, a 25-year arrangement, was signed between Delta International Energy, a Saudi company, and the Taliban. Under the terms described by RFE and Breitbart, Delta would hold exploration rights in the western provinces of Herat and Badghis for the first eight years, after which it would help the Taliban extract oil and gas. The Taliban’s mining and oil minister, Hedyatullah Badri, said the government is working to create investment opportunities for the assessment, exploration, prospecting and professional extraction of Afghanistan’s natural resources, with the aim of promoting economic growth and employment.

Khalilzad attended the signing alongside Badri and Delta CEO Shaher al-Taqi.

A Resume That Complicates the Picture

Khalilzad’s presence was awkward for the U.S. government given his long history in Afghanistan policy. He served as ambassador and later as a special representative for the country under both President Donald Trump and President Joe Biden. His visit came close to the 25th anniversary of the September 11 attacks, a timing critics say amplifies the political and symbolic stakes.

The Taliban’s outreach to the Trump administration has been a subject of recent reporting. The Financial Times reported earlier this month that Taliban officials have offered access to more than a trillion dollars in critical minerals in exchange for sanctions relief and the release of frozen assets.

“Relations between Afghanistan and the United States should not be assessed through the lens of the past 20 years of war, but rather on the basis of future co-operation. Our economic policy is open,” Taliban Foreign Minister Amir Khan Muttaqi told the FT.

So far, only Russia has formally recognized the Taliban government. Other nations — notably China, India and Iran — have been willing to engage Taliban officials and invest in the country. The European Union has made tentative contact on the return of Afghan refugees. The one identifiable Trump administration overture, in September 2025, was the president’s suggestion that the Taliban return control of Bagram airbase; the group refused and called all military and civilian facilities national assets, though Muttaqi suggested the U.S. could reopen its embassy in Kabul.

Critics Call It a Public Relations Win for the Taliban

Critics of the Taliban told RFE that whatever Khalilzad’s official status, his visits to Kabul amount to a public relations coup for the regime.

“Whatever his intentions, Khalilzad gave the Taliban something it has sought since returning to power: an appearance of American validation,” said Will Selber, an Afghanistan war veteran now with the Foundation for Defense of Democracies.

Michael Rubin of the Middle East Forum said Khalilzad’s participation in the Saudi energy deal ceremony was “galling.” Revisiting years of allegations that Khalilzad had conflicts of interest and was overly friendly with the Taliban, Rubin said the former ambassador had “come full circle” as a facilitator of the $200 million deal, and called for congressional hearings if not a broader investigation.

Source: www.breitbart.com — https://www.breitbart.com/national-security/2026/09/14/state-department-warns-u-s-companies-avoid-doing-business-taliban/

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