In a major setback to Israel, Iran and Saudi Arabia have agreed to restore diplomatic ties within two months. Tehran and Riyadh promised to reestablish diplomatic relations and reopen embassies after 7 years of tensions. The major diplomatic breakthrough negotiated with China lowers the risk of an armed conflict between the Middle East rivals. The deal is being seen as a major blow to Israel’s bid to form an Arab alliance against arch-rival Iran. Experts have blamed Israeli and American weakness that drew Saudi closer to Iran via China.