Australia and the World Past and Present

The relationship between Iran and Saudi Arabia has repercussions for the entire Middle East.

The two nations have significant differences.

They have different histories, political cultures and religious groups and relations between the two countries are often strained.

Both countries aspire to regional leadership and see the rise of the other’s power as problematic.

They have different oil policies and their connections with the US are almost polar opposites.

Ruling differences

Saudi Arabia is an absolute monarchy while Iran is a theocratic state. Founder of the Iranian revolution, Ayatollah Khomeini, considered that monarchy was incompatible with Islam.

The Saudi monarchy is conservative while the Iranian regime is Revolutionary. The Saudis view the exporting of Revolution to other countries in the region as destabilising.

Oil

Saudi Arabia has huge oil reserves but a relatively small population (over 36 million). It is more willing to have moderate oil prices than Iran is.

Iran has a higher population (more than 88 million) and wants to see a relatively high oil price in the short term. Iran’s long war with Iraq was a burden for the Iranian economy and further strengthened the need for a high oil price. The differences in the two country’s oil policies have been a point of contention.

Religious difference

Saudi Arabia is a majority-Sunni nation while Iran is majority-Shia. The two governments see each other’s version of Islam as incorrect.

In Iran the principle of ‘the Guardianship of the Islamic Jurists’ is influential. The central idea is that Islamic jurists should have custodianship over all Muslims – including within the sphere of government.

Saudi Arabia also controls the holy sites of Mecca and Medina. There have been tensions in the past over access to these sites.

Support for other groups

Saudi Arabia and Iran often find themselves supporting opposing sides in civil wars in the region.

The Saudis gave financial support to the Saddam Hussein regime during the Iran-Iraq war. This may have partly been due a desire to constrain Iran’s influence in the region but the Sunni-Shia issue may have also played a role. Iraq was majority Shia but Saddam Hussein was Sunni.

In the Yemen Civil War, Iran and the Saudis yet again found themselves on opposing sides. The Saudis supported the Yemeni government while Iran supported the Houthi rebels.

It was a similar situation regarding the Syrian Civil War. But this time the roles were reversed. Iran backed the government of Bashar al-Assad while the Saudis supported the rebels.

Relations with the US

Saudi Arabia has had a close relationship with the US since World War II. Iran used to have a much better relationship with the US in the period 1953-1979. But since the Iranian Revolution Iran has viewed the US as its enemy.

Iran and Saudi Arabia are both significant regional actors in the Middle East. They have natural differences which leads to tension. Even if the two had had similar internal structures and policy goals, it is likely that they would want to prevent the other rising as the regional hegemon. Bilateral competition between the two often spills over into surrounding countries making the entire Middle East more volatile.