The China-brokered Saudi-Iran deal has big repercussions for the Middle East — and the U.S.
A man in Tehran holds a local newspaper reporting on its front page the China-brokered deal between Iran and Saudi Arabia to restore ties, signed in Beijing the previous day, on March, 11 2023.
Atta Kenare | Afp | Getty Images
DUBAI, United Arab Emirates — When arch-rivals Saudi Arabia and Iran announced they were restoring diplomatic relations, much of the world was stunned — not only because of the breakthrough after years of mutual animosity, suspected attacks and espionage between the two countries, but because of who brokered the deal: China.
Taking up a specific role that the U.S. could not have fulfilled, this was Beijing’s first foray into Middle East mediation, an area that for the past few decades was largely occupied by Washington.
As tensions simmer between the world’s two largest economies and U.S. policymakers sound the alarm over competition and security concerns with China, what does Beijing’s ascendance in the region mean for the Middle East — and for U.S. interests?
“Many are breathing a sigh of relief [with] today’s official Iran-Saudi agreement,” Bader al-Saif, an assistant professor of history at Khalifa University in Abu Dhabi, wrote on Twitter after the news was announced. “All 3 parties to the deal can claim victory, but Saudis are arguably the biggest winner,” he contended.
From the Saudi perspective, normalization with Iran — a country that’s long been seen by the Saudi monarchy as one of its greatest security threats — removes obstacles in its reform and economic transformation journey, according to Joseph Westphal, a former U.S. ambassador to the kingdom.
“I think the leadership there believes that this is a very important moment for Saudi Arabia as it emerges … as a real leader in the world on many issues,” Westphal told CNBC’s Dan Murphy on Tuesday. “A constant struggle with Iran delays that and impedes the progress that they made.”
“Obviously, the United States could not have made this agreement possible because we don’t have a relationship with Iran,” the ambassador added. “I think China was a good partner to do this. I think they’re the right people,” he said, noting that China invests heavily in Saudi Arabia and is its top trading partner.
“So I think this is a very good thing all the way around.”
Hopes for de-escalation in areas like Yemen, where Saudi Arabia has carried out a brutal war against Iran-backed Houthi rebels since 2015, are now more realistic than before, analysts say. Risks to shipping and oil supplies in the region may be reduced, and trade and investment between the countries could add to growth.
Reduced risk of direct military confrontation
At the very least, improved communication will reduce risks of confrontation, said Torbjorn Soltvedt, principal Middle East and North Africa analyst at Verisk Maplecroft, who called the deal “a much needed pressure valve amid heightened regional tensions.”
Still, it’s a mistake to assume that everything is solved.
“Due to the ongoing shadow war between Iran and Israel – and sporadic Iran-backed attacks against shipping and energy infrastructure throughout the region – the risk of escalation due to miscalculation is still uncomfortably high,” he said.
In the past few years, the region has seen numerous attacks, particularly on Saudi and Emirati ships and energy infrastructure, which Riyadh and Washington blamed on Iran. Tehran rejects the accusations.
“Riyadh and Tehran will remain adversaries with competing visions for the region,” Soltvedt stressed. “But improved channels for communication have the potential to reduce the risk of a direct military confrontation between the two states.”
Iran is also now enriching uranium at its highest level ever, and is believed to be just months away from nuclear bomb-making capability. Rapprochement between Riyadh and Tehran may mean little if the latter’s nuclear program isn’t addressed.
Has Washington been snubbed?
The White House’s seeming reluctance to praise China was hard not to notice.
“We support any effort to de-escalate tensions in the region. We think it’s in our interests,” National Security Council spokesman John Kirby said of the news on Friday, adding that the Biden administration had made similar efforts in that direction.
But when asked about Beijing’s role, Kirby replied: “This is not about China and I’m not going to characterize here whatever China’s role is.”
Chinese President, Xi Jinping (L) is welcomed by Crown Prince of Saudi Arabia Mohammed bin Salman Al Saud (R) at the Palace of Yamamah in Riyadh, Saudi Arabia on December 8, 2022.
Anadolu Agency | Anadolu Agency | Getty Images
The news signaled the growing influence of China in the Arab region. And not just economically, as it already exports an immense amount of goods to the Middle East and is the largest importer of Saudi oil – but politically. Leaders of Saudi Arabia and the UAE have made concerted efforts to diversify their foreign relations and move away from being overly dependent on the U.S., as successive American administrations treat the Middle East as less of a priority.
“I think it demonstrates that U.S.’s influence and credibility in that region has diminished and that there is a new sort of international regional alignment taking place, which has empowered and given both Russia and China newfound influence and status,” Aaron David Miller, a senior fellow at the Carnegie Endowment for International Peace and former Middle East policy advisor for the State Department, told NBC News.
He called the fact that China brokered the deal “stunning.”
US Marine Corps General Kenneth F. McKenzie Jr. (C, behind), commander of the US Central Command (CENTCOM) and Lieutenant General Fahd bin Turki bin Abdulaziz al-Saud (front), commander of the Saudi-led coalition forces in Yemen, are shown reportedly Iranian weapons seized by Saudi forces from Yemen’s Huthi rebels, during his visit to a military base in al-Kharj in central Saudi Arabia on July 18, 2019.
Fayez Nureldine | AFP | Getty Images
Still, there seems to be a consensus that in terms of military power and security alliances in the region, U.S. influence is in no danger.
“No Chinese mediation — or any diplomatic involvement — will threaten US primacy in the region. All states, Iran included, know that,” Khalifa University’s Al-Saif said. The U.S.-Saudi Arabia security partnership spans nearly three-quarters of a century, and Saudi Arabia’s military arsenal is overwhelmingly supplied and maintained by the U.S. and American military personnel.
Neither KSA nor Iran will change overnight.
Bader Al-Saif
Assistant professor of history, Khalifa University
In any case, China’s gain doesn’t have to mean a loss for the U.S., many believe.
“This shouldn’t be a zero sum game for the US. It can serve US interests: Iran nuclear deal, Yemen, Lebanon for starters can benefit from the agreement,” Al-Saif said.
“A quick move should follow on these files [because] the agreement may not last long,” he added. “Might as well reap benefits while it lasts.”
Will the deal hold?
It’s yet to be seen whether the agreement between the two Middle Eastern powers – and the mutual goodwill expressed in its wake – will last.
Many regional watchers are skeptical.
“Iran’s opting for engagement here should not be misinterpreted as a de-escalation,” Behnam ben Taleblu, senior fellow at the Foundation for Defense of Democracies, told CNBC. “Tehran is capitalizing on deeper Chinese enmeshment in Persian Gulf trade as well as increased Saudi hedging of the pro-American order in the region.”
“There was zero political cost to the Islamic Republic to this agreement, whereas the mere optics and politics of it, let alone the substance, are in Iran’s favor,” he said, stressing his doubt that Iran will stop meddling in regional conflicts and other countries via proxies and militant activity.
Ben Taleblu also argued that Iran’s enmity with Israel played a role in its calculations as “Tehran is trying to show that it beat Jerusalem to Riyadh, and is trying to push back and break out of the diplomatic isolation it felt due to the Abraham Accords” when the UAE and Bahrain normalized relations with Israel.
For al-Saif, there is “certainly hope for the agreement to live on” and lead to the prosperity that people of both countries deserve. “But,” he said, “neither KSA nor Iran will change overnight.”
Rivian has posted a job listing for a steering engineer, specifically mentioning work on a future steer-by-wire system for the company.
Update, Aug 11: Rivian has now specifically mentioned rear-wheel steering in a job posting.
Steer-by-wire is an automotive concept that has been around for a long time, but hasn’t yet reached mass adoption. The idea is to replace (or supplement) mechanical linkages between the steering wheel and the wheels with electronic actuators instead.
There are a number of potential benefits to this, like allowing more customizability or adaptability to a steering system, reducing mechanical complexity, or adding speed-sensitive variable steering ratios.
Although there are also disadvantages, like a reduction in steering feel (although, since most cars are moving to electronic power steering, that was already gone anyway).
But few cars have implemented steer-by-wire systems, or at least not fully committed to them, given that mechanical steering racks are a relatively solved problem and the general inertia of the car industry which would rather stick with a solution they know than switch to something better (haven’t we here, at this EV publication, heard *that* one before…). There’s also the matter of regulations, which have often been written to require mechanical steering systems, and may need updating to allow for steer by wire.
But, steer by wire made it into mass production with the release of the Tesla Cybertruck. This was big news when Tesla committed to this – at the time, it was the only thing on the road to exclusively use a steer by wire system, though there are other cars with partial steer by wire (for example, mechanical front wheel steering, and steer by wire rear-wheel steering).
But it seems to have opened the floodgates, as a number of other companies are working on or have since released steer by wire systems (Lexus, for example).
And now, it looks like Rivian is one of those companies – though we don’t know if it’s for the front or rear. (Update: Well, now we know, it looks like they are at the very least developing a rear-wheel steering system, according to another job listing. Though the company might still be working on steer-by-wire for the whole vehicle, too)
The company posted a job listing for “Sr. Staff Technical Program Manager, Steering Actuator System,” based at its Irvine, CA headquarters (spotted by Rivianforums). This wouldn’t be so exceptional, except that the job posting also specifically points out that “you’ll have full cradle-to-grave ownership of the SBW subsystem.”
So – we know they’re working on steer by wire, to some extent.
But a few other EVs, particularly large EVs like the Rivian R1 platform is, use steer by wire just for the rear wheels – for example the Hummer EV and Rolls-Royce Spectre. These systems are particularly helpful for giant vehicles, because it allows them to be more nimble and make turns that otherwise would require a lot more… negotiation in a giant land yacht.
So it’s possible that Rivian is only working on rear wheel steer by wire here, but we’d like to think there’s a chance it’s working on steer by wire for the full vehicle.
We also don’t know if this would show up on all of Rivian’s vehicles, or only on certain models – the R2 and R3 are in development, with R2 in pretty late stages, and the R1 just got a big refresh. But, perhaps even more interestingly (and very speculatively), VW has invested heavily in Rivian for technology help, so we wonder if we might end up seeing this in VW group vehicles, or Scout vehicles eventually…
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Automakers are scrambling to push their EVs out the door before the $7,500 Federal tax incentive for EVs disappears — and BMW is no different, offering aggressive cash back, owner loyalty, and special financing rates on its just-released 2026 model year EVs.
BMW has a history of offering solid loyalty incentive programs on its EVs in early summer to clear the tail-end of the model year and make room for the incoming builds, but CarsDirect is reporting some unusual loyalty deals from the brand that seem to suggest BMW is keen to capitalize on a spike in EV sales ahead of the Federal tax incentive’s looming cancellation in September.
BMW dealers now have the choice of adding an additional $1,000 loyalty contribution on select 2026 EVs. The i5 and i7 are offered with $1,000 and $4,000 loyalty bonuses, respectively, meaning if you drive a BMW and your dealer opts to tack on the extra bonus, you could save $5,000 on a 2026 i7. These loyalty programs are good when buying or leasing.
There’s also a $1,000 conquest bonus available for drivers of eligible EVs and PHEVs from other brands. This program is stackable with other offers.
Like other EV brands offering huge lease incentives, BMW customers will see the largest rebates on new BMWs when leasing. Now through September 30th, 2026 BMW i5, i7, and iX models are available with a stout $9,900 lease credit, while the bigger BMW XM comes in with a slightly lower, but still substantial $7,500 lease incentive.
Big deals on big BMW i7 sedan
People who prefer to own their vehicles once the payments are up can still score a great deal on an objectively excellent 2026 BMW i7 luxo-cruiser, thanks to the previously mentioned loyalty bonus if they’re previous customers plus a $7,500 Loan Credit that anyone can get when financing their new i7 with the brand’s captive financing company. BMW Bank offers financing rates as low a 3.99% for up to 60 months on the 2026 i5 and i7 sedans, as well as the iX crossover, as well as 4.99% APR 60-month rate on the high-performance XM plug-in hybrid.
The BMW iX, of course, snatched the top spot in J.D. Power’s EV Satisfaction Survey last year, having taken the crown from its BMW i4 stablemate. You can find out what’s behind that score here, or experience it for yourself at a local BMW dealer near you. Click the link(s) below to get a uniquely tailored offer on the exact BMW you want (trusted affiliate links).
SOURCES: CarsDirect, J.D. Power; images via BMW.
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This week, industrial real estate giant Prologis flipped the switch on a rooftop solar project at one of its Franklin Park, Illinois warehouses — the first of 45 such rooftop installations the company plans to deploy in the next two years. Once finished, Prologis’ community solar project will generate up to 82 MW of clean energy!
Co-developed with Illinois utility ComEd and SunVest Solar, the independent power producer, the new rooftop community solar installation in Franklin Park sits atop a 195,000 sq. ft. Prologis logistics center serving a number of local and regional businesses.
Prologis will own and operate the 1.56 MW community solar project, and the energy it generates will serve mostly residential customers, with the minority of the community solar credits created benefiting local businesses.
“We’re proud to join ComEd to officially launch this project, the first of many community solar projects that our energy team is deploying across our Illinois rooftops,” explains Carter Andrus, Prologis’ Chief Operating Officer. “Illinois is one of the fastest-growing solar markets in the country, and we’re excited to help lead its momentum. For us, this is about more than solar panels … it’s about using our scale to make a real difference in the communities where we operate and bring the benefits of clean energy to more people across Illinois.”
Collaborative effort
Prologis is deeply invested in a number of distributer energy resources (DER), including rooftop solar, battery energy storage, and OnDemand Power, a scalable, portable microgrid and power management solution (read: software) designed to provide resilient, backup, and dispatchable energy where and when it is needed across the company’s global portfolio.
“As we continue to support the expansion of solar across northern Illinois, new and planned Prologis rooftop solar sites promise to provide northern Illinois customers additional options for lowering their energy costs via renewable energy connected to the grid,” offers Gil Quiniones, President and CEO of ComEd. “With dozens of additional projects in the pipeline, we are seeing the effect of the pro-solar incentives put in place by Governor JB Pritzker’s administration and how they support a cleaner, more equitable energy future in our state.”
With nearly 800 MWs of rooftop solar and energy storage already deployed and 82 more coming from Northern Illinois alone, Prologis is on track to reach its goal of 1 gigawatt by end of 2025. (!)
SOURCE | IMAGES: ComEd, Sunvest.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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