| Introduction: Contextual introduction. Body: Explain significance of Saudi Arabia-Iran reconciliation. Also write some challenges. Conclusion: Write a way forward. |
The enmity between Iran, a Shia-majority theocracy, and Saudi Arabia, a Sunni-majority absolute monarchy, has been one of the dominant drivers of conflicts in the West Asia. Recently, Saudi and Iranian officials held bilateral talks that concluded with an agreement to restore diplomatic ties which have been severed since 2016. This major diplomatic breakthrough is negotiated by China in Beijing.
Significance of Saudi Arabia-Iran reconciliation:
- Normalizing ties between Iran and Saudi Arabia could help stabilize global oil prices and ensure a consistent supply of oil to India as they are two major oil producers in the world.
- This could open up new avenues for trade and investment, leading to increased economic opportunities for India.
- The newly struck diplomatic deal can be a good starting point for more negotiations and agreements.
- India has strong economic and strategic interests in the Middle East including International North-South Transport Corridor (INSTC). Iran is part of India’s extended neighbourhood. Any instability in the region can have far-reaching consequences for India.
- Vision 2030” plan of Saudi Arabia calls for diversifying the oil-dependent economy by attracting tourism and foreign investment and turning it into a global hub for business and culture.
Challenges:
- Chinese mediation between Iran and Saudi will create challenges for India as it will contribute to increasing Chinese influence in the region.
- Saudi Arabia is vary of the large network of armed militias across West Asia that Iran funds and backs, seeing them as a threat to its own sovereignty as well as the regional balance of power.
- India has also been strengthening its relations with US. Now with US weakening in the region, it won’t be able to help India.
- I2U2 (Israel-India-UAE-US) or “quad of the middle east” may render dysfunctional with the isolation of UAE and Israel.
Saudi Arabia, Iran and China should be mindful of the pitfalls ahead and continue to build on the momentum created now to achieve a cold peace between the two regional powers.
