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Bilateral relations between the Islamic Republic of Iran and the Kingdom of Saudi Arabia have been strained over different geo-political issues such as the interpretations of Islam, aspirations for leadership of the Islamic world, oil export policy and relations with the United States and other Western countries. Although Saudi Arabia and Iran are both Muslim-majority nations and follow and rule through Islamic scripture, their relations are fraught with hostility, tension and confrontation, due to differences in political agendas that are strengthened for their differences in faith. Saudi Arabia is a right-wing conservative Sunni Islamic kingdom with a tradition of close ties with the United States, the United Kingdom and France. Iran is a Twelver Shia Islamic Republic founded in an anti-Western revolution with close ties to Russia and China. Both Saudi Arabia and Iran are seen to have aspirations for leadership of Islam, and have different visions of stability and regional order.
Both countries are major oil & gas exporters and have clashed over energy policy. Saudi Arabia, with its large oil reserves and smaller population, has a greater interest in taking a long-term view of the global oil market and incentive to moderate prices. In contrast, Iran is compelled to focus on high prices in the short term due to its low standard of living given recent sanctions after its decade old war with Saddam's Iraq.
After the Saudi diplomatic missions in Tehran and Mashhad was ransacked by Iranian protesters, Saudi Arabia broke off diplomatic relations with Iran on January 4, 2016.
On February 14, 2016, the government of Switzerland announced that it will represent Saudi interests in Iran and Iranian interests in Saudi Arabia. Switzerland has recently been the protecting power for Egypt and the United States since diplomatic relations were strained following the 1979 Islamic Revolution.