OSNT Corporation

Why Saudi Arabia and Iran Are Regional Rivals

Saudi Arabia (Sunni, Arab, monarchy) and Iran (Shia, Persian, theocratic republic) have been the two main rival powers in the Middle East for decades. Their competition is a mix of religion, ethnicity, geopolitics, ideology, and struggle for regional dominance. Here is a clear breakdown of the main reasons as of November 2025.

Reason	Explanation	Key Examples (up to 2025)
1. Sectarian Divide (Sunni vs. Shia)	Saudi Arabia positions itself as the leader of the Sunni Muslim world; Iran positions itself as the protector of Shia Muslims everywhere. Each side accuses the other of sectarian discrimination and fueling extremism.	– Saudi execution of Shia cleric Nimr al-Nimr (2016) → Iranians stormed Saudi embassy → diplomatic relations cut until 2023. – Iran supports Shia militias in Iraq, Lebanon (Hezbollah), and Yemen (Houthis); Saudi sees this as encirclement.
2. Struggle for Regional Leadership	Both want to be the dominant power in the Gulf and wider Middle East. Control of oil prices, shipping lanes (Strait of Hormuz), and influence over Arab governments is at stake.	– Competition inside OPEC (2014–2016 oil price war). – Rivalry over influence in Iraq after 2003, Syria after 2011, Lebanon, and Yemen.
3. Proxy Wars	Instead of direct war, they fight through proxies and allies.	– Yemen (2015–present): Saudi-led coalition vs. Iran-backed Houthis (war still simmering in 2025 despite 2022–2024 truces). – Syria (2011–present): Iran + Hezbollah + Russia kept Assad in power; Saudi armed Sunni rebels. – Iraq: Iran-backed Shia militias (PMF) vs. Saudi attempts to court Sunni tribes and Kurdish leaders.
4. Ideological Clash	Saudi Wahhabi monarchy vs. Iran’s 1979 Islamic Revolution that calls for exporting the revolution and opposes monarchies. Iran’s leaders routinely call Saudi rulers “illegitimate” and “American puppets.”	– Iranian chants of “Death to America, Death to Israel, Death to Al Saud.” – Saudi media and clerics portray Iran as a “Safavid” (Persian) threat trying to dominate Arabs.
5. Arab–Persian Ethnic Divide	Centuries-old tension between Arabs and Persians is exploited by both sides in propaganda.	Saudi officials and media often refer to Iran as “Persian” or “Majus” (Zoroastrian/fire-worshipper slur); Iranian hardliners call Saudis “bedouin” or “Wahhabi takfiris.”
6. U.S.–Israel Alignment vs. “Axis of Resistance”	Saudi Arabia is a close U.S. ally and has tacit security cooperation with Israel. Iran leads the “Axis of Resistance” (Hezbollah, Hamas, Houthis, Syrian regime) against the U.S. and Israel.	– Saudi purchases billions in U.S. weapons; Iran is under heavy sanctions. – Iran arms anti-Israel groups; Saudi quietly cooperates with Israel against Iran.
7. Control of Holy Sites and Hajj Politics	Both claim leadership of the Muslim world. Iran regularly accuses Saudi of mismanaging Mecca and Medina and politicizing the Hajj.	– 1987 Mecca clash (400+ dead, mostly Iranian pilgrims). – 2015 Mina stampede → Iran–Saudi blame game. – Iran boycotted Hajj 2016; relations cut again.

Recent Détente (2023–2025) – Does It End the Rivalry?

In March 2023, China brokered a surprise deal to restore diplomatic relations. Embassies reopened, trade resumed, and both sides toned down rhetoric. By 2025:

• Direct flights and trade are growing (bilateral trade > $10 billion projected in 2025).
• Yemen war has largely quieted (UN-brokered truce holding since 2022).
• High-level visits (Iranian president visited Riyadh in 2023; Saudi FM visited Tehran).

But the rivalry is not over – it is simply managed and de-escalated:

• Structural issues (sectarian networks, proxy forces, U.S. vs. Iran sanctions) remain.
• Iran still arms Houthis and Hezbollah; Saudi still hosts U.S. troops and cooperates with Israel.
• Both sides hedge: Saudi keeps talking to Iran while pursuing U.S. defense pact and possible normalization with Israel.

Bottom Line (November 2025)

Saudi Arabia and Iran are no longer in open cold (or hot) war, but they remain strategic competitors. The 2023–2025 détente is pragmatic and China-brokered, not a genuine reconciliation. As long as each wants to be the leading power in the Gulf and wider Muslim world, the rivalry will continue—just at a lower temperature.