Saudi Arabia- Iran Agreement.

The recent agreement signed between Saudi Arabia and Iran in Beijing has the potential to have far-reaching impacts worldwide. This agreement, which was negotiated in secret, could signal an easing of tensions between Riyadh and Tehran after many years of proxy battles in Yemen. It could also provide a boost for China’s efforts to project itself as a peacemaker in the region.

While the United Nations, France, Jordan, and other West Asian countries have welcomed the agreement, it is seen by some as a counter to the U.S.-brokered Abraham Accords, which could cause concern in the U.S., Israel, and the UAE.

For India, the agreement is disquieting, given its current tensions with China. While New Delhi has not yet formally reacted to the announcement, experts suggest that it is an opportunity for India to rework its priorities and pay more attention to regional developments. This is particularly important given India’s focus on the I2U2 quadrilateral, which includes Israel, the U.S., and the UAE, and may have taken the spotlight away from its ties with Iran and Saudi Arabia.

The agreement also highlights the strain in Washington’s ties with Saudi Arabia, despite President Joe Biden’s visit to Riyadh last year. The recent breakdown in talks over the Iran nuclear deal has only added to the tensions. In contrast, Chinese President Xi Jinping’s visit to Riyadh in December resulted in more than a dozen agreements on energy and infrastructure.

Diplomats suggest that Riyadh’s agreement with Tehran does not signify a rejection of the U.S., but rather that new global players are exerting their influence.