Iran and Saudi Arabia are two important countries in West Asia. Historically, the nature of their relations has played a significant role in the formation of geopolitical dynamics of the region and the presence of great powers in regional affairs. Suppose Iran and Saudi Arabia reconcile their differences and establish closer relations. In that case, this issue can lead to greater stability in the region as well as an increase in economic and political cooperation. The normalization and strengthening of relations between Iran and Saudi Arabia may have significant consequences for Europe’s role in the region.
Tensions between Iran and Saudi Arabia have intensified in recent years due to regional conflicts and geopolitical interests. However, recently there have been some positive developments in the relations between the two countries, which could have implications for Europe. In September 2021, it was reported that the foreign ministers of Iran and Saudi Arabia held talks in Baghdad, the first high-level meeting between the two countries in years (France 24, 2021, https://n9.cl/fva8tb). These talks were considered a positive step towards reducing tensions and normalizing relations between the two regional powers. Throughout history, Europe has been aligned with Saudi Arabia. It has conflicted with Iran, especially over its nuclear program and participation in regional conflicts such as the war in Syria and support for Lebanon’s Hezbollah. If Iran and Saudi Arabia strengthen their relations, it can potentially create a more stable regional environment that can benefit Europe by reducing the risk of conflict and instability.
Warming of relations between Tehran and Riyadh is considered an important diplomatic achievement in this region. Relations between the parties are currently in good condition (CNBC, 2023, https://shorturl.at/6H8O3). The two countries have had several talks at a high level (Arab News, 2023, https://shorturl.at/VFd0J) and they have reopened their embassies (Anadolu Ajansı, 2023, https://shorturl.at/tUJQ3). Understanding the dynamics of the relationship between Tehran and Riyadh is important to maintain stability and security in the region. Considering Europe’s strategic interests in West Asia, any significant change in the relations between these two countries can have important consequences for Europe’s foreign policy. Achieving de-escalation in West Asia, increasing regional influence, exiting the nuclear crisis, dealing with climate challenges, cooperation in the field of energy, transit, and logistics, and changing the power structure of West Asia are among the most important effects of the normalization of relations between Tehran and Riyadh is considered to be Europe.
Achieving de-tension in West Asia
Achieving de-escalation in West Asia is one of the key priorities of the European Union. This issue has been emphasized in the statement of the European Union after the news of the normalization of relations between Iran and Saudi Arabia. It is stated in this statement that “the European Union welcomes the announced agreement on the resumption of diplomatic relations between the Kingdom of Saudi Arabia and the Islamic Republic of Iran and is waiting for its implementation.” The European Union appreciates the diplomatic efforts leading to this important step. Since Saudi Arabia and Iran are both central countries for the security of the region, the resumption of their bilateral relations can contribute to the stability of the entire region. Promoting peace and stability and achieving de-escalation in the Middle East is one of the key priorities of the European Union. The European Union is still ready to interact with all actors in the region with a gradual and comprehensive approach and with complete transparency” (The European External Action Service, 2023, https://shorter.me/FnHtj).
The normalization of relations between Iran and Saudi Arabia will improve security and stability in West Asia. The first important step towards improving Iran-Saudi relations is the decision to normalize relations. The decision to normalize relations is a great achievement and may pave the way for future developments (Middle East Political and Economic Institute, 2023, https://shorturl.at/t3psN). This agreement may lead to better coordination on issues of common interest, such as terrorism prevention and crisis management in Yemen, Syria, and Iraq. Therefore, the normalization of relations between Tehran and Riyadh may reduce regional tensions and create opportunities for negotiation and conflict resolution.
Increasing European regional influence
The think tank of the European Council on Foreign Relations (ECFR) has published a note regarding the normalization of relations between Iran and Saudi Arabia and considers this agreement as a basis for increasing Europe’s regional influence. In this note, it is stated that European leaders should firmly support the prospect of stability in the Middle East in line with the main interests of Europe. This agreement opens the door for Europe to increase its regional influence in support of this goal. The Europeans will not be the decisive actors in shaping a political and security agenda in the Middle East, but they can reinvigorate their ideas to strengthen the achievements of the agreement and strengthen regional cooperation. For example, they could revive their Persian Gulf Maritime Security Mission, EMASoH, which was originally intended as an overarching mission (European Council on Foreign Relations, 2023, https://shorter.me/Wkxcn).
Getting out of the nuclear crisis
The hope of drawing a diplomatic and not a military path to get out of the nuclear crisis has increased after the agreement to normalize relations between Iran and Saudi Arabia. The Europeans have now concluded that supporting the stability process in West Asia by taking concessions from Tehran in the field of nuclear issues cannot be a reasonable solution to achieve the result. Therefore, the necessary balance must be established to expand regional interactions.
With its positive approach to normalizing relations with Riyadh, the Islamic Republic of Iran has shown that the case, which remained unresolved for more than a decade, finally came to a conclusion with the good faith of the parties and with the successful mediation of Beijing. Therefore, Iran’s nuclear case can reach the desired end with such a formula.
Cooperation in the field of energy
The normalization of relations between Saudi Arabia and Iran brings opportunities for Europe in the field of energy. After the discovery of huge oil reserves in the region, especially in Saudi Arabia, it was vital for Europe to maintain stable relations with major oil-producing countries. For this reason, Saudi Arabia and other countries became close allies and main suppliers of European oil. Common economic and security interests were the basis of strategic cooperation with Saudi Arabia.
Saudi Arabia and Iran have about 37% of the world’s oil reserves. Strengthening their cooperation together within the framework of OPEC and OPEC+ can be more useful for achieving common interests such as market control and ensuring the maximum benefits for both producers. These two countries have huge gas reserves and can cooperate to increase production. There are fields of cooperation in the petrochemical industry as well. Also, the development of renewable energy has become one of the main priorities of the governments of the Middle East. Cooperation between Iran and Saudi Arabia can lead to the production of solar energy and renewable energy. Bilateral cooperation can overcome the obstacles to the development of new energies in Iran.
Saudi Arabia and Iran both have significant populations and significant economic resources. If they can cooperate, they can create significant economic potential in this region. Both countries as well as the region and extra-regional countries such as Europe will benefit from this (ResearchGate, 2023, https://n9.cl/5oxyw).
Coping with climate challenges
Julien Barnes-Dacey, Cinzia Bianco, and Ellie Geranmayeh in a note in the think tank of the European Council of Foreign Relations, about the advantage of European countries in the field of dealing with climate challenges and the use of renewable energies, point out that the normalization agreement between Iran and Saudi Arabia shows It shows that the European Union can use tools such as the “Global Gateway Initiative” and the “European Green Deal” to strengthen cooperation with the countries of the region (European Council on Foreign Relations, 2023, https://shorter.me/Wkxcn).
Considering the existing dialogues between regional actors on these issues and upcoming events such as COP28 in the United Arab Emirates or the Climate Week in the Middle East and North Africa in Saudi Arabia, renewable energies and climate challenges are also promising platforms for cooperation. These issues reflect the challenges facing the governments of the region, where Europeans have a clear advantage in this field compared to other foreign players.
Transit and Logistics
Bilateral cooperation between Iran and Saudi Arabia and strengthening common interests in transportation and regional logistics is very important. Iran through the North-South Corridor (INSTC) can be the connecting route of Saudi Arabia to access the economies of Central Asia, Russia, the Eurasian Economic Union (EAEU), and Eastern Europe (Middle East Briefing, 2023, https://shorter.me/dPLFK).
One of the strategies of the Saudi economy is to become a logistics hub between Africa, Europe, and Asia. Bilateral cooperation in transit and logistics can lead to Iran’s easy access to Africa and Europe and Saudi Arabia’s better access to Eurasia. In addition, joint interactions in flight lines, air traffic, and the expansion of air and sea lines are also some of the points ahead in increasing trade; Therefore, the agreement between Tehran and Riyadh in the field of transit and logistics will also be useful for Europe.
Changing the power structure of West Asia
The normalization of relations between Saudi Arabia and Iran is an important event that can change the power structure of the Middle East. One possibility is continued European aid to Saudi Arabia and its allies. This issue preserves the existing situation in the region. Trying to create a more balanced relationship between Iran and Saudi Arabia is another choice. This requires encouraging the two countries to cooperate in the field of regional problems and amicable settlement of conflicts. Although this option is more difficult than maintaining the status quo, it may lead to a safer and more peaceful Middle East. The normalization of relations between Saudi Arabia and Iran creates a new order in the region, which is beneficial for regional and extra-regional diplomacy, especially in Europe.
1. France 24 (2021), Rivals Iran and Saudi Arabia hold talks in Baghdad, Accessible at: https://n9.cl/fva8tb
2. CNBC (2023), Saudi Arabia could start investing in Iran ‘very quickly,’ finance minister Mohammed Al-Jadaan says, Accessible at: https://shorturl.at/6H8O3
3. Arab News, (2023), Saudi Arabia hopes to see Iran’s president visit following King’s invitation, Accessible at: https://shorturl.at/VFd0J
4. Anadolu Ajansı (2023), Iran’s Raisi invited to visit Saudi Arabia after détente, Accessible at: https://shorturl.at/tUJQ3
5. Middle East Political and Economic Institute (2023), Normalization of the relation between Iran and KSA; what does it mean for the Middle East, Accessible at: https://shorturl.at/t3psN
6. ResearchGate (2023), The implications of Iran-Saudi Arabia deal for regional stability, Accessible at: https://n9.cl/5oxyw
7. The European External Action Service (2023), Iran/Saudi Arabia: Statement by the Spokesperson on the announced resumption of diplomatic relations, Accessible at: https://shorter.me/FnHtj
8. European Council on Foreign Relations (2023), The shoots of stability: What the Saudi-Iran deal means for the Middle East and Europe, Accessible at: https://shorter.me/Wkxcn
9. Middle East Briefing (2023), The Normalization of Saudi – Iran Relations: Economic Capacity, Trade Potential, and Outlook, Accessible at: https://shorter.me/dPLFK