Washington: In one of their biggest arms deal, the US and Saudi Arabia on Friday inked an agreement worth USD 29.4 billion for sale of 80 new F-15SA combat jets and modernisation of another 70, amid heightened tensions with Iran over blocking of key oil route in Persian Gulf.

"Valued at USD 29.4 billion, this agreement includes production of 84 new aircraft and the modernisation of 70 existing aircraft as well as munitions, spare parts, training, maintenance and logistics," White House Deputy Press Secretary, Josh Earnest, said in a statement.

These F-15SA aircraft, manufactured by The Boeing Company, are among the most sophisticated and capable aircraft in the world. The sale is part of a larger US effort to realign its defence policies in the Persian Gulf to keep Iran in check. It came amid fresh threat from Tehran on disrupting the oil traffic through the Strait of Hormuz.

Earnest said the US and Saudi Arabia have signed a government-to-government agreement under the Foreign Military Sales programme to provide advanced F-15SA combat aircraft to the Royal Saudi Air Force.

"This agreement will positively impact the US economy and further advances the president's commitment to create jobs by increasing exports," Earnest said.

According to industry experts, this agreement will support more than 50,000 American jobs, engaging 600 suppliers in 44 states, and providing USD 3.5 billion in annual economic impact to the US economy.

"This agreement reinforces the strong and enduring relationship between the United States and Saudi Arabia, and demonstrates the US commitment to a strong Saudi defensecapability as a key component to regional security," Earnest said.