Archrivals Iran and Saudi Arabia agreed Friday to restore diplomatic relations, a dramatic breakthrough brokered by China after years of soaring tensions between the Middle Eastern powerhouses.

The deal, which will see the two leading oil producers reopen embassies in each other’s capitals, was sealed during a meeting in Beijing — a boost to China's efforts to rival the United States as a broker on the global stage.

The agreement could put a damper on Israel's ongoing work to normalize relations with its Arab neighbors and complicate the U.S. and other Western powers' bid to contain Iran's nuclear ambitions.

The Saudi-Iran talks were held because of a “shared desire to resolve the disagreements between them through dialogue and diplomacy, and in light of their brotherly ties,” according to a joint communique from Tehran, Riyadh, and Beijing that was published by the official Saudi Press Agency.

The agreement followed intensive negotiations between Ali Shamkhani, a close adviser to Iran’s supreme leader Ayatollah Ali Khameni, and Saudi Minister of State Musaad bin Mohammed Al-Aiban, according to the statement.
It added that the foreign ministers from both countries would “meet to implement this, arrange for the return of their ambassadors, and discuss means of enhancing bilateral relations.”

After the agreement was announced, a White House National Security Council spokesperson, the U.S. welcomed “any efforts to help end the war in Yemen and de-escalate tensions in the Middle East region.”
“De-escalation and diplomacy together with deterrence are key pillars of the policy President Biden outlined during his visit to the region last year,” the spokesperson said.

The initial reaction from Israel was not positive. Former Israeli Prime Minister Naftali Bennett tweeted that it was “a dangerous development” for his country and “a fatal blow” to the effort to build a regional coalition against Iran, which has said it intends to wipe the Jewish state off the map.