Iran and Saudi Arabia Agree to Restore Diplomatic Ties
Longtime regional adversaries, Iran and Saudi Arabia, have agreed to resume diplomatic relations and reopen embassies in each other’s countries, following negotiations in Beijing led by China. The two governments announced the agreement via their respective state media agencies, with both agreeing to resume diplomatic relations and re-open embassies within two months.
The Saudi statement thanked Beijing for its leadership in enabling the talks and described the process as proceeding from their shared desire to resolve disagreements through dialogue and diplomacy. The announcement is seen as very positive news for the region.
Iran and Saudi Arabia have long regarded each other as grave security threats and have accused each other of destabilizing the region. The breakthrough is a positive step and signals that there has been enough dialogue to start some serious confidence-building measures and to agree on a roadmap to restore full diplomatic relations.
Analysts believe that this development shows that Saudi-Iran dialogue has succeeded after many years, with support from regional powers like Iraq and Oman, as well as global powers like China. It also illustrates that China has stepped up its role in the region in new ways, particularly in mediation.
The agreement has been welcomed by Oman’s foreign ministry, which expressed hope that it will contribute to strengthening the pillars of security and stability in the region and consolidating positive and constructive cooperation that benefits all peoples of the region and the world. The breakthrough is also likely to result in positive movement on the Yemen ceasefire, which has been ongoing for years.
The announcement is a significant win for China, which has been increasing its presence in the region and playing a more active role in mediation efforts.
In 2016, Saudi Arabia cut diplomatic ties with Iran after Iranian protesters stormed the Saudi embassy in Tehran in response to Saudi authorities executing 47 dissidents, including a leading Shia cleric. The resumption of diplomatic relations and the re-opening of embassies after several years of hostilities and accusations of destabilization is a significant development and a positive step towards regional peace and stability.
Although unlikely to have played a role, the news comes days after Iran reported a very large lithium discovery.
Information for this briefing was found via Al Jazeera, Associate Press, CNBC, Bloomberg, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
SmallCapSteve started blogging in the Winter of 2009. During that time, he was able to spot many take over candidates and pick a variety of stocks that generated returns in excess of 200%. Today he consults with microcap companies helping them with capital markets strategy and focuses on industries including cannabis, tech, and junior mining.
