Iran is focussing its diplomatic energies on advancing its ‘neighbourhood policy’ and long-term cooperation with China and Russia.

Iran’s readiness for restoring diplomatic relations with Saudi Arabia after six years since Riyadh cut ties in January 2016 is part of broader revival of diplomacy in the region after a decade of intense geopolitical competition and proxy wars involving Saudi Arabia and its Arab allies and Turkey & Iran.

Yemeni crisis has been a challenge for Saudi Arabia’s standing and reputation as the leader of the Arab and the Islamic world. It is caught between the resilience of the Houthis to sustain their fight, and the growing cost of war and the allegations of innocents being victims of their air strikes.

The early reactions from Turkey and Iran underline their readiness to work with the Taliban to safeguard their interests and expand their regional influence. Both are also willing to work with other regional actors to mitigate traditional and non-traditional security threats emanating from Afghanistan.

The tenure of Ebrahim Raisi as Iran's President is not likely to be a smooth sail, considering the immense challenges that lie ahead on both domestic and foreign policy fronts.

The expected victory of a hardline, conservative candidate in the forthcoming Iranian presidential elections could become a hindrance to fulfilling the country’s economic agenda and lead to greater domestic instability.

The talks between Iran and Saudi Arabia mediated by Iraq may help in the de-escalation of regional tensions.