The west Asian power houses Iran and Saudi Arabia have decided to bury the hatchet and normalize ties after a truce was brokered by China.  It is a huge step with far reaching implications in the middle East

The talks held in Beijing brought to an end to seven years of hostility in which embassies of both nations were closed. The announcement was surprising yet expected.

The two regional powerhouses have been in talks to re-establish diplomatic relations for nearly two years. At times, negotiators seemed to drag their feet, the deep distrust between the two countries appearing immovable.

“As a result of the talks, Iran and Saudi Arabia agreed to resume diplomatic relations and open the embassies within two months. After  implementing the decision, the two foreign affairs ministers will meet to facilitate the exchange of ambassadors” Read part of the joint statement released after the truce.

China has shown diplomatic dexterity by bringing these two rivals together. This has increased China’s standing in the global stage as a trusted power. This signals a shift in power as Washington has always had an upper hand in the Middle East.

This is a pointer to a shift in regional alliances. Saudi Arabia’s relationship with the US has become strained in recent years, while China’s standing has risen. Unlike Washington, Beijing has shown an ability to transcend the many rivalries that criss-cross the Middle East.

China has forged good diplomatic relations with countries across the region, driven by strengthening economic ties, without the Western lectures on human rights

In retrospect, Beijing has been poised to broker the conflict-ridden Middle East’s latest diplomatic breakthrough for years, simultaneously underscoring the US’ diminishing regional influence.

This detente could see an end to wars in the middles east as the two nations are fighting proxy wars in Syria and Yemen.

In Yemen, a Saudi-led coalition military campaign to quash Iranian-backed rebels triggered one of the world’s worst humanitarian crises. In Syria, Iran supported President Bashar al-Assad as he brutalized his own people, only to find his forces facing off with rebels backed by Saudi Arabia and other Gulf countries.

In Lebanon too, Iran and Saudi Arabia have backed different factions, contributing to a two-decade-long political crisis that has exacted a huge economic and security toll on the tiny eastern Mediterranean country.

It’s a rare piece of good news for a region still reeling from their rivalry. How that plays out – and whether it can undo the havoc wreaked by the rivalry – remains to be seen.