ABSTRACT
This chapter explores that Iran-Saudi relations are constrained by a number of structural factors limiting significant security cooperation which have been exacerbated by the creation of the Islamic Republic of Iran (IRI) in 1979. With the end of the Cold War, one of the key areas of continuing strategic interest is the Persian Gulf, where Iraq remains a marginal player in regional politics, Iran a potential threat and the Gulf Cooperation Council (GCC) states under Saudi Arabia's leadership largely reliant on external powers for their security. In part, therefore, regional order in the Persian Gulf is a function of domestic political developments in Iran and Saudi Arabia. On a different level, Iran's relations with the United States will affect Tehran's regional policies. Tehran's relations with Riyadh cannot change without reference to the relations each has with Washington.
