Iran Says Deal Reached With Saudi Arabia To Restore Ties

(Bloomberg) --

Iran and Saudi Arabia agreed to restore diplomatic relations, Iranian state-run news outlets said, 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 did not mention the news and Saudi officials did not immediately respond to a request for comment. 

“Clearing up misunderstandings and looking towards 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 which has 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 with Iran 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.

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