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Iran and Saudi Arabia have no diplomatic relations following an attack on the Saudi Embassy in Tehran in 2016. Bilateral relations between the Islamic Republic of Iran and the Kingdom of Saudi Arabia have been strained over several 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 Islamic scripture, their relations are fraught with hostility, tension and confrontation, due to differences in political agendas that are strengthened by their differences in faith. Saudi Arabia is a right-wing conservative Sunni Islamic kingdom with a tradition of close ties with the United States and the United Kingdom. Iran is a Twelver Shia Islamic Republic founded in an anti-Western revolution with close ties to Russia, China and Cuba. Both Saudi Arabia and Iran are seen to have aspirations for leadership of Islam, and they have different visions of stability and regional order.
Both countries are major oil and 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 and its larger population.
In the Syrian Civil War Iran has supported the Syrian government militarily and with billions of dollars of aid, while Saudi is a major supplier of aid to rebel groups. Both countries have accused each other of support for terrorism.