-Analysis-

Observers have reacted to the planned restoration of diplomatic ties between the Islamic Republic of Iran and the Saudi monarchy, with Chinese mediation, as a warning to the United States on its declining position in the Middle East — and China's arrival as a regional powerbroker.

The announcement even provoked accusations between government and opposition in Israel, which was likely hoping to normalize ties with Saudi Arabia in the framework of the Abraham Accords.

The U.S. website Axios recently cited an unnamed Israel official as blaming U.S. weakness under the current Democratic administration for this development in Middle East. While the United States remains Israel's chief ally, there is an inevitable clash of perspectives between the right-wing government in Tel Aviv and Washington.

Yet on Iran's regional threat, both sides insist they're on the same page.

Opponents of Israel's current Benjamin Netanyahu government have even blamed its divisive judicial reforms for distracting the country from regional affairs at a sensitive time. But the Israeli official cited in Axios observed that developments behind the scenes, including U.S.-Israeli collaborations, were more important than surface events.

In Iran, the breakthrough was presented by some as a victory against the West's bid to isolate the regime, which has deftly worked itself into a corner with its contested nuclear activities, alignment with Russia in Ukraine, and harsh repression of protesters in recent months. The conservative Kayhan newspaper, unrelated to Kayhan-London, called the deal a "working blow against America" and Israel.