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Aya Batrawy

Rivals Saudi Arabia and Iran restore ties, with China's help. Here's why it matters

Iran Saudi Arabia China United States Xi Jinping Gulf Joe Biden Mohammed bin Salman Oil Beijing

Secretary of Iran's Supreme National Security Council Ali Shamkhani (right) shakes hands with senior Chinese diplomat Wang Yi, as Saudi national security adviser Musaad bin Mohammed al-Aiban looks on during an agreement signing ceremony between Iran and Saudi Arabia to reestablish diplomatic relations and reopen embassies in Beijing, Friday. (Nournews via AP)

Regional rivals Saudi Arabia and Iran announced on Friday they are restoring full diplomatic relations in a deal brokered by China, a move that could reduce tensions in the region and asserts China's growing influence in the Gulf.

The agreement paves the way for Saudi Arabia and Iran to reopen their embassies and diplomatic missions within the coming two months. It also revives accords on security cooperation and trade and investment.

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