Last week’s China-brokered agreement between Saudi Arabia and Tehran to re-establish diplomatic ties is potentially transformational for the region’s politics.Much uncertainty remains over what it means for the US’ traditional role as the region’s hegemon and the extent to which China will challenge it.Diplomacy could well still falter, even fail. But the mere fact an agreement was made is significant in itself. Save for later Print Download Share Riyadh and Tehran’s fierce rivalry has been a constant in the region for decades. The Mar. 10 Beijing agreement is a single, cautious step toward reconciliation — but shouldn’t be underplayed. There are drivers for both countries. Proxy conflicts in Yemen and Syria are proving unwinnable militarily, unaffordable economically and untenable politically. With a nuclear deal having slipped away, Iran needs allies not more enemies. While US security guarantees have not stopped drones from attacking critical Gulf infrastructure, de-escalation can.