At least on the surface, Iran and Saudi Arabia have come a long way since their China-mediated agreement in March to normalize ties. Diplomatic missions have been reopened, foreign ministers have exchanged visits, and Crown Prince Mohammed bin Salman Al Saud (MbS) has directly engaged with President Ebrahim Raisi.

However, the détente process remains fragile. This was put on display earlier this month, when a game in Iran between football clubs from the two countries was called off at the last minute. The Saudi team refused to enter the pitch over a statue of late Quds Force commander Qasem Soleimani at the stadium. Such hiccups in the relationship can be expected as long as political and security ties are not consolidated.

Without doubt, confidence building will require time and a proactive approach. In this context, working towards establishing a stronger framework for trade—mindful of existing external restrictions—would be an...