However, the risk remains that either party could renege on the deal should they find their intended goals are not being met or realised. This would certainly lead to a resumption of fighting in Yemen.
From the Saudi perspective, the deal helped move the two countries away from costly military competition, focusing on economic competition instead. With this aim, Riyadh has implemented a three-fold strategy:
- Calming hostilities with Iran
- Maintaining its security relationship with the United States
- Diversifying and enhancing its military capabilities
This multi-pronged strategy, along with diplomatic engagement with Iran to establish deterrence through diplomacy and bring in a new political mediator, namely China, provides a favourable environment to foster reconciliation in Yemen and put an end to its ongoing civil war.
Success will depend on the commitment of all parties involved to work toward a peaceful and fair resolution that benefits everyone. Although Riyadh and Tehran have different motivations, the potential benefits of their agreement outweigh the risks.
Can this approach work? Can Saudi Arabia persuade Iran to reach a political solution in Yemen while Tehran maintains its relationship with the Houthis?
On its part, Iran — reading the situation and reality on the ground — has realised that Saudi Arabia has no interest in war in the Gulf region.
The failure of the American maximum pressure policy on Iran, Tehran's determination to increase uranium enrichment, and Israel's threats to strike Iranian nuclear facilities have placed the region on the brink of war.
Read more: Is Israel on 'red alert' yet?
Saudi Arabia does not want any part in this escalation, which undermines its security and delays its social and economic transformation project. Saudi Arabia's recent openness with Iran sends a clear message that the Kingdom is not willing to risk direct war with its hostile neighbour.
This has alleviated Iranian concerns about any Saudi participation or cooperation — whether with Israel or the US — to target Iran.
Saudi concerns and objectives
Saudi Arabia's main concern regarding Iran is its direct support for Iranian-backed groups in Yemen and the destructive impact of Iranian intervention in Yemen and the surrounding areas.
Additionally, Saudi Arabia is concerned about Iran's advanced missile programme that has been found in the hands of its proxy groups around the region.
This concern is not being addressed in talks between the United States and its European partners with Iran. This is one of the main factors that drove Riyadh to reach a regional deal with Tehran.
While Saudi Arabia is under no illusion that Iran will scale back on its missile programme, it believes that normalising relations with Iran is a necessary step to help foster stability in the region — especially in Yemen.
Iran may also benefit from Saudi Arabia's social and economic transformation programme, where Tehran eyes opportunities. But realising such opportunities is largely dependent on the stability of the region.
On its part, Saudi Arabia has demonstrated its commitment to protect this delicate balance. For example, it has remained neutral in the conflict in Ukraine, which helped protect it from the negative repercussions of Russian-Western tensions.
The ultimate goal is to achieve peace and stability in the region, and Saudi Arabia is willing to engage in constructive dialogue with Iran to achieve this.
China's mediating role
A potential factor that could support greater stability and sustainability in Yemen is the Saudi-Chinese economic, security, and strategic partnership. Beijing's mediation played a crucial role in achieving a breakthrough towards peace, enabling Riyadh and Tehran to reach the deal.
Read more: Why China is mediating in the Middle East
Given China's political and economic influence over Iran, its role is expected to increase in this process, making Iran more inclined to fulfill its commitments in the agreement with the Kingdom — particularly in Yemen, which is a key commitment area.