Regional rivals Iran and Saudi Arabia agree to restore their ties after years of tensions

Archrivals Iran and Saudi Arabia agreed Friday to restore diplomatic relations, a dramatic breakthrough brokered by China after years of soaring tensions between the Middle Eastern powerhouses.

The deal, which will see the two leading oil producers reopen embassies in each other’s capitals, was sealed during a meeting in Beijing — a boost to China's efforts to rival the United States as a broker on the global stage.

The agreement could put a damper on Israel's ongoing work to normalize relations with its Arab neighbors, and complicate U.S. and other Western powers' bid to contain...