Saudi Arabia and Iran Ease Mideast Rift That Rattled Oil

(Bloomberg) — Iran and Saudi Arabia will restore diplomatic ties, easing a geopolitical rivalry in the Persian Gulf that has unnerved oil markets.

The countries have been reaching out to each other for at least the past two years, first secretly and gradually more publicly. It’s part of a broader regional realignment in which several old foes reestablished ties or forged new ones as the U.S. steps back from the Middle East, a key security concern for Riyadh.