Saudi Arabia-Iran deal

Context:

The recently signed Saudi Arabia-Iran agreement, if successful, will have a far-reaching impact worldwide.

Impacts of the Saudi Arabia-Iran agreement:

Possible easing of tensions between Saudi Arabia and Iran: Saudi and Iran have been engaged in proxy battles, including in Yemen, for many years.
- However, recent talks between the two countries could signal an easing of tensions and a boost for China’s efforts to project itself as a peacemaker.
Seen as a counter to the U.S. brokered Abraham Accords: While the agreement has been welcomed by the United Nations, France, Jordan and West Asian countries.
- It is also seen as a counter to the U.S. brokered Abraham Accords, and will be greeted with some concern in the U.S., Israel and the UAE.
India’s concern: Although India has not yet responded, the close partnership between Saudi Arabia and Iran with China’s involvement is worrying for India, given its current tensions with China.
- While Saudi-Iranian normalisation is good news, China being the midwife is bad news for India.
India urged to rework priorities and pay attention to regional developments: It is an opportunity for India to rework its priorities and pay serious attention to regional developments” rather than be “surprised” by the development.
Other analysts have pointed to India’s focus on the I2U2 quadrilateral along with Israel, the U.S. and UAE, which may have taken the spotlight away from its ties with Iran and Saudi Arabia

Strained U.S-Saudi ties:

While the U.S.Iran tensions are high given the recent breakdown in talks over the Joint Comprehensive Plan of Action, more commonly known as the Iran nuclear deal, the Beijing agreement also shows up the strain in Washington’s ties with Saudi Arabia.
Diplomats, however, point out that Riyadh’s agreement with Tehran does not signify a rejection of the U.S., so much as it shows that new global players are exerting their influence.
While the balance of power remains with the U.S., its influence and commitment in the region have definitely reduced, given an absence of strategic vision in conflicts in Iraq, Syria, Yemen.
The past decade has shown many Middle Eastern countries losing faith in the U.S., and broadening their options to players like Russia for energy matters, and China for economic and political matters.

Abraham Accords

The Israel–UAE normalisation agreement is officially called the Abraham Accords Peace Agreement.
It was initially agreed to in a joint statement by the United States, Israel and the United Arab Emirates (UAE) in 2020.
The UAE thus became the third Arab country, after Egypt in 1979 and Jordan in 1994, to agree to formally normalise its relationship with Israel as well as the first Persian Gulf country to do so.
Concurrently, Israel agreed to suspend plans for annexing parts of the West Bank. The agreement normalised what had long been informal but robust foreign relations between the two countries.

I2U2

I2U2 was initially formed in 2021 following the Abraham Accords between Israel and the UAE, to deal with issues concerning maritime security, infrastructure, and transport in the region.
At that time, it was called the ‘International Forum for Economic Cooperation’.
That was referred to as the ‘West Asian Quad’.
Its stated aim is to discuss “common areas of mutual interest, to strengthen the economic partnership in trade and investment in our respective regions and beyond.
Six areas of cooperation have been identified by the countries mutually, and the aim is to encourage joint investments in water, energy, transportation, space, health, and food security.