China shows how to turn economic power into regional influence

The restoration of diplomatic ties between longtime rivals Iran and Saudi Arabia under a China-brokered deal has profound implications for global politics, writes Indian news site Telangana. Today.

The rapprochement between the two Gulf powers, which came after years of proxy disputes, reflects the new diplomatic prowess of the Chinese state. The deal was announced in Beijing, which is also a sign of a shift in the balance and dynamics of power in the region as US influence continues to wane.

For India, this reflects Beijing’s real role in the global agenda. However, New Delhi will also benefit from this agreement. Iran and Saudi Arabia are two major oil producers and any conflict between them could lead to price spikes which could also have a significant impact on India’s energy security. Normalizing relations would also stabilize oil supplies. Moreover, the two Islamic powers are important trading partners of India, which has strong economic and strategic interests in the Middle East, especially in the North-South international transport corridor.

• says the publication.

By keeping a watchful eye on China’s growing influence in the region and working to secure its strategic interests in the Middle East, India can play a role in promoting dialogue and cooperation between the Iran and Saudi Arabia, thus contributing to stability.

Under a Beijing-brokered deal, Iran and Saudi Arabia will reopen their embassies, ensuring respect for each other’s sovereignty and reaffirming the validity of previously signed agreements. The deal could have implications for US efforts to isolate Iran economically through sanctions.

Saudi Arabia severed ties with Iran in 2016 after protesters in Tehran invaded the territory of Saudi diplomatic missions following the execution of a senior Shia cleric in Riyadh.

Saudi Arabia has long touted itself as the world’s premier Sunni nation, while Iran sees itself as the protector of Shia Islam. The two countries are engaged in numerous proxy battles in Yemen, Syria and Bahrain.

The first and biggest test of the deal is unfolding in Yemen, where a Saudi-led coalition has been fighting Iran-backed Houthi rebels since 2015.

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