Gulf-Iranian ties will de-escalate regional tensions

Significance

This follows from the agreement to restore diplomatic relations signed in Beijing on March 10 between Iran and Saudi Arabia. Saudi Arabia and Iran will reopen embassies within two months.

Impacts

• Gulf-US military, intelligence and security relations will not be affected by China’s growing importance in the region.
• Renewed Saudi-Iranian relations may contribute to shaping Arab engagement with Syria’s President Bashar al-Assad.
• The agreement between Iran and Saudi Arabia reinforces Riyadh’s efforts to project an image of a leading power and responsible G20 member.
• Iran could move on a maritime agreement with Kuwait, facilitating Saudi-Kuwaiti gas exploitation in the area, signalling goodwill.