Context

Recently, Iran and Saudi Arabia signed an agreement to resume diplomatic relations which was brokered by China. 

Background (Tensions between Iran-Saudi Arabia):

• The feud between Iran and Saudi Arabia is a struggle for regional dominance and religious supremacy.
• The Middle East regional rivals, Iran and Saudi Arabia have had tense relationship since 2016. 
• Over the years both countries have supported proxies across the region, including in Lebanon, Syria, Iraq and Yemen.
• Iran has supported Shia Houthi rebels in Yemen who forced out the Saudi-backed government in 2014, while Saudi Arabia has responded with devastating air campaign against the Houthis since the following year.
• In January 2016, Saudi Arabia cut its diplomatic ties with Iran after its embassy in Tehran was attacked by demonstrators following Riyadh's execution of a prominent Shia Muslim cleric.
• In 2019, drones and missiles struck major Saudi Arabian oil facilities, which were blamed on Iran causing further tense situation. 
• Previously, there have been many attempts to broker a peace deal between the two countries but without any success. 

Key-highlights of the Agreements:

• The agreement has been brokered by China. 
• According to the agreement, Iran and Saudi Arabia will resume diplomatic relations after 7 years and reopen embassies within two months. 
• The countries will also re-establish trade and security relations.