A fuel rod for a light water reactor comprises a cladding tube which comprises a zirconium alloy having a composition including 0.6 to 2.0% by weight of Nb, 0.5 to 1.5% by weight of Sn, 0.05 to 0.3% by weight of Fe, and the balance being Zr and incidental impurities; uranium oxide fuel pellets packed in the cladding tube; and end plugs closing both ends of the cladding tube. The cladding tube is sealed by TIG welding with the end plugs. Precipitates having grain diameters of 0.01 to 0.5 .mu.m and comprise intermetallic compounds containing Zr, Nb and Fe are present at grain boundaries in the structure of heat affected zones of the cladding tube, the heat affected zone being adjacent to a bead formed by TIG welding.