With China playing the role of peacemaker between Iran and Saudi Arabia, it is but natural that the first meeting between the foreign ministers of the two countries on Thursday took place in Beijing. Both sides agreed to resume full diplomatic ties after seven long years. This development is expected to have a widespread impact on the power equations across West Asia, the dilution of US strength in the region, and the emergence of China as a global player. Israel, which has used the hiatus between the two countries to further its goal of isolating Iran, may have to re-think its strategy.