Iran & Saudi Proxy War: Unpacking Regional Rivalries

Dora Raynor III 23 Jun 2025

The geopolitical landscape of the Middle East has long been defined by intricate power struggles, and at the heart of many of these conflicts lies the enduring rivalry between Iran and Saudi Arabia. This deep-seated contest, often described as an "Iran and Saudi War" fought by proxy, extends far beyond their borders, shaping the destinies of nations and influencing global stability. While direct military confrontation between the two regional titans remains largely absent, their competition for political and ideological influence plays out intensely across various Middle Eastern states, fueling devastating civil wars and exacerbating existing tensions.

Understanding the nuances of this multifaceted rivalry is crucial for anyone seeking to comprehend the complexities of the modern Middle East. From the battlefields of Yemen and Syria to the diplomatic corridors of the Gulf, the fingerprints of Iran and Saudi Arabia are evident, each nation strategically backing rival factions in a high-stakes game of regional dominance. This article delves into the origins, manifestations, and potential future trajectories of this critical geopolitical dynamic, offering insights into the forces that continue to shape one of the world's most volatile regions.

Historical Roots of a Complex Rivalry
The Middle East's Proxy Battlegrounds
Escalation Points and Demonstrated Capabilities
The Evolving Diplomatic Landscape
External Actors and Their Roles
Economic Stakes and Strategic Vulnerabilities
The Path Forward: De-escalation or Continued Tension?

Historical Roots of a Complex Rivalry

The rivalry between Iran and Saudi Arabia is not a recent phenomenon, but rather a deeply entrenched competition rooted in historical, ideological, and geopolitical factors. While both are major oil producers and Islamic nations, their interpretations of Islam (Sunni vs. Shia), their political systems (monarchy vs. Islamic Republic), and their aspirations for regional leadership have consistently put them at odds. For decades, this tension simmered, occasionally flaring up but rarely boiling over into direct military confrontation. However, over the last two decades, Iran and Saudi Arabia have been on opposing sides of the deadliest conflicts in the Middle East, transforming their rivalry into a defining feature of the region's instability. The 2003 invasion of Iraq, which dismantled Saddam Hussein's Sunni-led regime, inadvertently empowered Iraq's Shia majority, creating a power vacuum that Iran was quick to fill. This shift fundamentally altered the regional balance of power, alarming Saudi Arabia and intensifying its efforts to counter perceived Iranian expansionism. The Arab Spring uprisings, beginning in 2011, further destabilized the region, providing new arenas for this proxy contest to unfold as both powers sought to shape the outcomes in their favor.

The Middle East's Proxy Battlegrounds

The "Iran and Saudi War" is primarily a battle for influence, fought through proxies, financial aid, and political maneuvering rather than direct military engagement. The two have backed rival groups in Iraq, Syria, and Yemen, as well as in Lebanon and the Palestinian territories, turning these nations into unfortunate arenas for their geopolitical chess match. This indirect approach allows both powers to pursue their strategic objectives without risking a full-scale, catastrophic war between themselves, yet the human cost in these proxy states is immense.

Yemen: A Humanitarian Catastrophe Fueled by Proxy

Perhaps no conflict better exemplifies the devastating impact of the Iran-Saudi rivalry than the ongoing civil war in Yemen. Saudi Arabia leads a coalition supporting the internationally recognized government against the Houthi movement, which is widely perceived to be backed by Iran. The conflict, which began in 2014, has resulted in one of the world's worst humanitarian crises. For Saudi Arabia, the war in Yemen is a critical security concern, viewing the Houthis as an Iranian proxy on its southern border. Saudi Arabia viewed the détente with Iran, which began in 2023, as a way to deter Houthi attacks on its borders and to help quickly bring an end to the war in Yemen, highlighting the intertwined nature of their regional security and the broader rivalry. The constant threat of Houthi missile and drone attacks on Saudi territory, such as the interception of a ballistic missile above Riyadh on December 6, 2021, causing shrapnel to fall in several residential areas, underscores the direct implications of this proxy conflict for Saudi security.

Syria: A Pivotal Struggle for Influence

The Syrian civil war, which began in 2011, has been a significant battleground for Saudi Arabia and Iran. Syria has historically played an important role for Iran to assert its influence, serving as a vital link in its "Axis of Resistance" connecting Tehran to Hezbollah in Lebanon and various Palestinian groups. The civil war threatened this established influence and created an opportunity for Saudi Arabia to increase its own influence by supporting opposition groups against the Assad regime, which is a staunch ally of Iran. The protracted conflict saw Iran, alongside Russia and Hezbollah, provide crucial military and financial support to prop up President Bashar al-Assad, while Saudi Arabia and its allies supported various rebel factions. The outcome in Syria, largely favoring the Assad regime, represented a strategic victory for Iran, further solidifying its regional footprint, much to the chagrin of Riyadh.

Iraq, Lebanon, and the Palestinian Territories

Beyond Yemen and Syria, the shadow of the Iran and Saudi Arabia proxy war extends to other critical areas. In Iraq, both nations have vied for influence, with Iran leveraging its deep ties to Shia political and paramilitary groups, while Saudi Arabia has sought to strengthen Sunni and more nationalist factions. Lebanon, too, is a classic example of this proxy struggle, with Saudi Arabia traditionally backing Sunni political leaders and parties, while Iran provides substantial support to Hezbollah, a powerful Shia political party and militant group. Even in the Palestinian territories, the rivalry plays out, with Iran supporting groups like Hamas and Islamic Jihad, while Saudi Arabia has historically supported the Palestinian Authority and Fatah. These dynamics underscore that while they are not confronting each other militarily, the contest for political influence in the region mainly plays out in other Middle Eastern states, often at great human cost to the local populations.

Libya: An Unlikely Front

An often-overlooked arena for the Iran and Saudi Arabia proxy war is Libya. While seemingly distant from the core Middle East, the Libyan civil war has drawn in various regional and international players, including the two rivals. Iran and Saudi Arabia have waged a proxy war in Libya, albeit indirectly through their respective allies. Saudi Arabia, along with the U.A.E, Egypt, and Sudan, have provided support to the Libyan National Army and its leader, warlord Khalifa Haftar. While Iran's direct involvement is less overt than Saudi Arabia's, its broader regional strategy of supporting anti-Western or anti-Saudi factions can be seen as indirectly aligning with certain elements opposed to the Saudi-backed forces. This demonstrates the expansive reach of their rivalry, impacting even seemingly unrelated conflicts where regional power dynamics are at play.

Escalation Points and Demonstrated Capabilities

While direct military confrontation is avoided, the proxy war has seen significant moments of escalation that highlight the offensive capabilities of Iran and the vulnerabilities of Saudi Arabia. One of the most striking examples occurred in September 2019, when Iran struck Saudi Aramco’s facilities with 18 drones and three missiles, showcasing its offensive capabilities and Saudi Arabia’s vulnerability. This sophisticated attack, which severely impacted global oil supplies, followed an incident in June 2019 when Iran downed a US surveillance drone, and Washington opted against retaliatory strikes. The Islamic Republic, perhaps emboldened by the lack of direct US military response, escalated its posture, leading to the Aramco strike. These incidents serve as stark reminders that despite the proxy nature of the conflict, the potential for direct confrontation or severe economic disruption remains a constant threat. The continuous threat of missile and drone attacks, such as the December 6, 2021, interception of a ballistic missile above Riyadh, underscores the ongoing nature of these security challenges for Saudi Arabia.

The Evolving Diplomatic Landscape

Despite the deep-seated rivalry and ongoing proxy conflicts, there have been notable shifts in the diplomatic landscape, particularly in recent years. In recent years, Iran has also made diplomatic overtures to former regional rivals, such as Saudi Arabia and Egypt, in order to improve relations. These shifts have helped rally broader regional support for de-escalation. The most significant development was the China-brokered agreement in March 2023 to restore diplomatic ties between Iran and Saudi Arabia, after years of severed relations. This détente, while fragile, signaled a potential new chapter in their relationship, driven by mutual interests in regional stability and economic development. For Saudi Arabia, this move was partly strategic, as it viewed the détente as a way to deter Houthi attacks on its borders and to help quickly bring an end to the war in Yemen. However, the path to genuine reconciliation is fraught with challenges. Saudi deference to Iran, while seemingly present in these diplomatic overtures, is largely tactical, not heartfelt. Deep-seated mistrust and competing geopolitical ambitions persist. Interestingly, there have also been reports, though unconfirmed by Riyadh, that Iran and Saudi Arabia are planning to conduct joint military exercises in the Red Sea, which would be a first for the two nations. Such an unprecedented move, if it materializes, would signal a remarkable shift in regional security dynamics. Furthermore, the broader regional context is complex. Saudi Arabia, the UAE, Oman, and Qatar are engaged in frantic efforts at diplomacy to end the conflict between Iran and Israel and ensure peace and stability in the wider region. This highlights a shared interest in preventing a wider regional conflagration, even amidst their own rivalries. In a surprising turn, the Kingdom of Saudi Arabia also came in Iran’s support and expressed its strong condemnation and denunciation of the blatant Israeli aggressions against the brotherly Islamic Republic of Iran, which undermine regional peace and stability. This indicates a complex interplay of alliances and rivalries, where immediate threats can sometimes override long-standing animosities.

External Actors and Their Roles

The "Iran and Saudi War" cannot be fully understood without considering the roles of external powers. The United States has historically been a key ally of Saudi Arabia, providing security guarantees and military support, while maintaining a complex relationship with Iran. US President Donald Trump, for example, was greeted by Saudi Crown Prince Mohammed bin Salman upon his arrival at King Khalid International Airport, symbolizing the strong US-Saudi bond. Trump's administration often took a hardline stance against Iran, with the President stating he would allow two weeks for diplomacy to proceed before deciding whether to launch a strike in Iran after the drone incident. However, US policy has also been characterized by a desire to de-escalate regional tensions and avoid getting drawn into direct conflict. Russia's role has also grown significantly. Russia’s ties with Iran have deepened since the Ukraine war, with Tehran supplying drones and missiles to Moscow. This strategic partnership has given Russia a stronger foothold in the Middle East and complicated efforts by Western powers to isolate Iran. On June 13, Russia backed Iran’s call for a UN Security Council meeting, condemning Israel’s actions, further demonstrating its alignment with Tehran on certain regional issues. Israel is another crucial player. The war in Iran, or rather the ongoing regional tensions involving Iran, has erased any lingering doubt in the region about Israel’s strategic concerns regarding Iran's nuclear program and its regional influence. Israel views Iran as its primary existential threat, and this shared concern has, at times, fostered a quiet alignment of interests with Saudi Arabia, despite the absence of formal diplomatic ties between them. The prospect of a direct Iran-Israel conflict is a major concern for all regional actors, including Saudi Arabia, as it would inevitably destabilize the entire region.

Economic Stakes and Strategic Vulnerabilities

The economic dimension of the Iran-Saudi rivalry is profound, primarily due to their roles as major oil producers and their strategic geographic locations. The Strait of Hormuz, a narrow waterway through which a significant portion of the world's oil supply passes, is a critical choke point. If Iran attacks Saudi oil facilities or closes the Strait of Hormuz, the global economy would face severe repercussions. This vulnerability gives Iran significant leverage and is a constant source of concern for Saudi Arabia and the international community. The 2019 Aramco attacks vividly demonstrated how easily vital infrastructure can be targeted, highlighting Saudi Arabia's reliance on robust air defenses and international support to protect its economic lifelines. For both nations, maintaining the flow of oil is essential for their economies, yet the temptation to use energy as a weapon in their geopolitical contest remains.

The Path Forward: De-escalation or Continued Tension?

The future of the Iran and Saudi Arabia proxy war remains uncertain, poised between the potential for further escalation and the fragile hope of sustained de-escalation. The recent diplomatic overtures, particularly the restoration of ties, represent a significant step towards managing, if not resolving, their differences. Both nations recognize the immense costs of continued regional instability, both in terms of human lives and economic development. The ongoing efforts by Gulf states to mediate conflicts, including between Iran and Israel, underscore a collective regional desire for stability. However, deep-seated ideological differences, competing national interests, and the lingering mistrust built over decades of proxy conflict make a complete resolution challenging. Should the current Iranian regime fall, for instance, the tone in the Gulf might flip, potentially leading to new alignments or even a different set of challenges. The influence of external powers, the volatile nature of the conflicts in Yemen and Syria, and the unpredictable dynamics of the broader Middle East will continue to shape this critical relationship. While direct military confrontation between Iran and Saudi Arabia seems unlikely in the immediate future, their contest for political influence will undoubtedly continue to define the region's geopolitical landscape for years to come. The goal for regional and international actors alike is to encourage dialogue and find common ground that prioritizes stability and prosperity over perpetual rivalry.

Conclusion

The "Iran and Saudi War," though largely fought by proxy, has profoundly shaped the Middle East, leaving a trail of humanitarian crises and political instability across multiple nations. From the battlegrounds of Yemen and Syria to the diplomatic overtures and strategic maneuvers in the Red Sea, the rivalry between Tehran and Riyadh remains a central pillar of regional dynamics. While moments of intense escalation, such as the Aramco attacks, underscore the dangers of this indirect conflict, recent diplomatic shifts offer a glimmer of hope for a more stable future. Understanding this complex geopolitical chess match is vital for anyone interested in global affairs. The stakes are incredibly high, impacting not just regional stability but also global energy markets and international security. We encourage you to delve deeper into the specific conflicts mentioned and the broader historical context. What are your thoughts on the future of Iran-Saudi relations? Do you believe the recent détente will lead to lasting peace, or is it merely a tactical pause in a long-standing rivalry? Share your insights in the comments below, and consider exploring our other articles on Middle Eastern geopolitics for further context and analysis.

Iran says no to nuclear talks during conflict as UN urges restraint

Accelerate Your Potential

Iran & Saudi Proxy War: Unpacking Regional Rivalries

Table of Contents