After years of intense competition, the China-brokered Mar. 10 agreement between Iran and Saudi Arabia to reopen embassies within two months has the potential to significantly ease tensions. The accord also sets the stage for the normalization of relations between the two regional powers.

Much has been written about the geopolitical challenges and benefits of the deal. There is little doubt that Iran’s primary motivation in pursuing the agreement is focused on the security upsides of de-escalation in the region. This focus is shared by the Kingdom, which views peace as a means to pursue its Vision 2030 economic diversification agenda.

It is also clear that the Iranian strategy of regional de-escalation is in full swing, which explains why Ali Shamkhani—the secretary of Iran’s Supreme National Security Council (SNSC)—traveled to both Iraq and the United Arab Emirates (UAE) following his trip to China. However, considering the fact that...