Tensions between Saudi Arabia and Iran have been high since the cutting of diplomatic relations between the two states in 2016, following an incident involving protesters storming the Saudi Embassy in Iran to demonstrate against the execution of Nimr Baqir al-Nimr, a Shi’ite Muslim cleric. As two of the biggest powers in the Middle East, their hostile relationship has had a major impact on the region. One of the countries heavily affected by their disagreements is Yemen; since 2014, the country has become the battleground for Saudi Arabia and Iran to engage in a proxy war. So, it came as a surprise when Saudi Arabia and Iran, on the 10th of March, announced the re-establishment of their diplomatic relations through a joint statement with the mediator, China, and for their embassies in each respective country to be re-opened within the next two months. What does this mean for the region?

Well firstly, one of the key elements of the statement discussed the agreed mutuality to reactivate the 2001 security cooperation agreement. The security cooperation agreement was intended to keep regional stability, and this major step can help put an end to the war in Yemen and Syria. The wars in Yemen and Syria have long been fueled by Saudi Arabia and Iran due to religious differences, but have since evolved to be far more complex. Saudi Arabia is a nation claiming to be the majority leader of the Sunni Muslims, and Iran is a nation of Shi’ite Muslims. This religious divide has seen Saudi Arabia sourcing rebel groups in Syria and joining a US-led coalition against the largest terrorist group in Syria, ISIS. Since the war started, Iran has been backing Syrian President Bashar al-Assad, sourcing him with military and funding to fight the Sunni Muslim rebel groups. Similarly, in Yemen, Saudi Arabia is backing the Yemeni government to fight the Houthi rebel groups, a group Iran has been accused of supporting through the supply of weapons. Iran has denied such allegations despite claiming to have political support for the group. Previous talks between representatives of Saudi Arabia and Iran to discuss the war in Yemen have failed, thus many now hope the restoration of ties between the two nations can help put a stop to the fighting. Iranian media have further reported that the representative to the Iranian mission to the United Nations commented that the restoration of relations between the two nations was historic and would help bring a settlement to the war in Yemen, as Iran has recently announced it will stop arming the Houthi rebels due to their new relationship with Saudi Arabia.

Other nations in the Middle East are celebrating the news, one nation being Lebanon, which has felt the effect of the tense relations between Saudi Arabia and Iran. Hezbollah, a Shia political and militant group, also labelled as a terrorist group by nations such as the US, was formed by Iran's Revolutionary Guards and plays an important role for Iran. Hezbollah and Saudi Arabia also have their differences. Hezbollah has accused the nation of terrorism while Saudi Arabia has counter-accused Hezbollah of being a terrorist group and warned Lebanon to cut its political influence. This led to Saudi Arabia taking its embassies out of Lebanon and expelling Lebanese envoys. This ended in 2022 when their embassies opened again, however, there is still a tense relationship. Hezbollah leader Sayyed Hassan Nasrallah welcomed the restoration of relations between Saudi Arabia and Iran, stating it was a "good development". Other Gulf nations, such as Iraq, have also fallen victim to Saudi and Iranian proxy wars since the 2003 fall of Saddam Hussein, who led a Sunni regime that was a threat to Iran. Iran and Saudi have been fighting for influence and control of the region by supporting various groups. Other nations and international organisations have expressed their support for the restoration of relations. A spokesperson for the White House on behalf of the US stated that they "welcome any efforts to end the war in Yemen and de-escalate tensions in the Middle East region". It's clear the restoration of relations between Saudi Arabia and Iran marks a historical moment for the region as it is embraced by nations worldwide. It can help improve the security issues within the Middle Eastern region by putting an end to proxy wars and improving the stability of the Middle East.