Iran and Saudi Arabia agreed to restore diplomatic relations, in a move likely to ease tensions between two geopolitical rivals in the Persian Gulf that have rattled oil markets.
(Bloomberg) —
Iran and Saudi Arabia agreed to restore diplomatic relations, in a move likely to ease tensions between two geopolitical rivals in the Persian Gulf that have rattled oil markets.
The deal, which includes commitments to reopen embassies within two months, was signed in China after days of negotiations between secretary of Iran’s Supreme National Security Council Ali Shamkhani and his Saudi counterpart, the Islamic Republic News Agency reported. Saudi state-run media confirmed the agreement.
“Clearing up misunderstandings and looking toward the future of Tehran-Riyadh relations will certainly develop regional security and increase cooperation between Persian Gulf countries,” IRNA cited Shamkhani as saying.
Iran Quietly Pushes to Reopen Saudi Missions as Talks Inch Ahead
The two countries have been reaching out to each other quietly, and then more publicly, for at least the past two years – part of a broader regional realignment that’s seen several old foes reestablish or forge new ties.
Saudi Arabia cut ties in 2016 after its Tehran embassy was mobbed. The two countries have been in talks for over a year to reduce tensions that spilled out into attacks on oil infrastructure and fueled wars in Syria and Yemen.
Talks had stalled in December after Tehran accused Riyadh of using satellite TV channels to support protests that have rocked the Islamic Republic, AP reported.
Regional Stakes
The US has been drawing back gradually from the Middle East and relations with Saudi Arabia in particular have faltered. That’s encouraged Riyadh and other regional countries to reach out to old adversaries to reduce tensions and shore up their own security.
Saudi Arabia, which has battled Iranian-backed Houthi fighters in Yemen since 2015, is pushing for an end to a conflict that’s exposed its oil facilities to drone and missile attacks. Establishing formal relations with Iran could help ease that conflict and potentially allow Saudi Arabia to withdraw from the war if a peace deal materializes.
The stakes are high. In 2019 an assault claimed by Yemeni Houthi fighters on Saudi Arabia’s Abqaiq facility temporarily knocked out half the production capacity in the world’s biggest oil exporter, roiling global markets.
–With assistance from Omar Tamo.
(Adds Saudi confirmation, context.)
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