A joint communique confirming the restoration of relations from was issued by Riyadh, Tehran, and Beijing - and was first published in state-run Saudi Press Agency (SPA). The statement emphasizes "a shared desire to resolve the disagreements between them through dialogue and diplomacy, and in light of their brotherly ties."

It spells out that the next step is for foreign ministers from both countries to "meet to implement this, arrange for the return of their ambassadors, and discuss means of enhancing bilateral relations."

Not only has the regional rivalry, which intensified most during the decade of the proxy war in Syria which began in 2011, been set amid a centuries-long divide over correct interpretation of Islam (Shia Iran vs. Sunni Saudi Arabia), but it has also spilled over in places like Yemen, scene of another grinding proxy war which pit Shia rebels against a Saudi-backed government.

The Saudis and Iranians also clash in supporting rival political factions inside Lebanon, with Tehran being the Shia paramilitary group Hezbollah's biggest backer. For these reasons, accusations of supporting terrorism have been frequently hurled back-and-forth over the years. Iranian state media, for example, has long charged the Saudis with being a prime covert backer of the Islamic State (ISIS) in their drive to overthrow President Assad in Syria.

The detente is also a surprise given the warming relations between Saudi Arabia and Israel, based on attempts to bring Riyadh into the Abraham Accords. Very likely, this new agreement which was helped along by China will delay any possibility of the Saudis and Israelis establishing official relations on an accelerated timeline.

* * *

Below is the official joint communique:

Riyadh, March 10, 2023, SPA -- In response to the noble initiative of His Excellency President Xi Jinping, President of the People's Republic of China, of China's support for developing good neighborly relations between the Kingdom of Saudi Arabia and the Islamic Republic of Iran;

And based on the agreement between His Excellency President Xi Jinping and the leaderships in the Kingdom of Saudi Arabia, and the Islamic Republic of Iran, whereby the People's Republic of China would host and sponsor talks between the Kingdom of Saudi Arabia and the Islamic Republic of Iran;
Proceeding from their shared desire to resolve the disagreements between them through dialogue and diplomacy, and in light of their brotherly ties;

Adhering to the principles and objectives of Charters of the United Nations and the Organization of Islamic Cooperation (OIC), and International conventions and norms;

The delegations from the two countries held talks during the period 6-10 March 2023 in Beijing - the delegation of the Kingdom of Saudi Arabia headed by His Excellency Dr. Musaad bin Mohammed Al-Aiban, Minister of State, Member of the Council of Ministers, and National Security Advisor, and the delegation of the Islamic Republic of Iran headed by His Excellency Admiral Ali Shamkhani, Secretary of the Supreme National Security Council of the Islamic Republic of Iran.

The Saudi and Iranian sides expressed their appreciation and gratitude to the Republic of Iraq and the Sultanate of Oman for hosting rounds of dialogue that took place between both sides during the years 2021-2022. The two sides also expressed their appreciation and gratitude to the leadership and government of the People's Republic of China for hosting and sponsoring the talks, and the efforts it placed towards its success.

The three countries announce that an agreement has been reached between the Kingdom of Saudi Arabia and the Islamic Republic of Iran, that includes an agreement to resume diplomatic relations between them and re-open their embassies and missions within a period not exceeding two months, and the agreement includes their affirmation of the respect for the sovereignty of states and the non-interference in internal affairs of states. They also agreed that the ministers of foreign affairs of both countries shall meet to implement this, arrange for the return of their ambassadors, and discuss means of enhancing bilateral relations. They also agreed to implement the Security Cooperation Agreement between them, which was signed on 22/1/1422 (H), corresponding to 17/4/2001, and the General Agreement for Cooperation in the Fields of Economy, Trade, Investment, Technology, Science, Culture, Sports, and Youth, which was signed on 2/2/1419 (H), corresponding to 27/5/1998.

The three countries expressed their keenness to exert all efforts towards enhancing regional and international peace and security.

Issued in Beijing on 10 March 2023.
For the Islamic Republic of Iran
Ali Shamkhani
For the Kingdom of Saudi Arabia
Musaad bin Mohammed Al-Aiban
Minister of State, Member of the Council of Ministers, and National Security Advisor
For the People's Republic of China
Wang Yi
Member of the Political Bureau of the Communist Party of China (CPC) Central Committee and Director of the Foreign Affairs Commission of the CPC Central Committee
--SPA

Silicon Valley Bank collapse marks worst bank failure since Great Recession

The closure of Silicon Valley Bank (SVB) was announced by the Federal Deposit Insurance Corporation (FDIC) on Friday, marking the worst U.S. financial institution failure in nearly 15 years.

SVB was the 16th largest bank in the United States until Friday afternoon. It failed after anxious depositors rushed to withdraw money over concern for the bank's health.

SVB was connected to a number of Silicon Valley industries and startups. Y Combinator, an incubator startup that launched Airbnb, DoorDash and DropBox, regularly referred entrepreneurs to them.

"This is an extinction-level event for startups," Y Combinator CEO Garry Tan said. "I literally have been hearing from hundreds of our founders asking for help on how they can get through this. They are asking, 'Do I have to furlough my workers?'"

The California bank also suffered from the decline in the value of technology stocks, as well as industry layoffs. SVB was so prominent that it was considered an ideal starting point to early-stage startups.

SVB's collapse was so quick that, hours before its closure, some industry analysts were hopeful that the bank was still a good investment.

The bank's shares had fallen 60% on Friday morning, after already falling 60% on Thursday. SVB had sold off $1.75 billion in shares to compensate for declining customer deposits.

SVB is the second-largest U.S. bank to close since the Great Recession. Its downfall echos the closure of Washington Mutual in 2008.

© Justin Sullivan/Getty Images / Getty ImagesPeople line up outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Depos

Washington Mutual had over $300 billion in assets when it collapsed. It was sold to Chase by the FDIC, with any remaining WaMu branches becoming Chase branches.

By the end of 2022, SVB touted $209 billion in total assets. Its total deposits numbered $175.4 billion.

The FDIC will make deposits below the $250,000 limit available on Monday, though it is unknown how many deposits were above the limit.

According to the White House, Treasury Secretary Janet Yellen is watching SVB "closely." But the White House asserts that post-2008 reforms will prevent further economic meltdown.

"Our banking system is in a fundamentally different place than it was, you know, a decade ago," said Cecilia Rouse, chair of the White House Council of Economic Advisers. "The reforms that were put in place back then really provide the kind of resilience that we'd like to see."

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