I’m not sure I understand how your linked article supports your point. Iran and SA can have diplomatic interactions and still be regional rivals - as evidenced by the rather brutal conflict between SA and the Iranian client rebels in Yemen. SA might be willing to talk to Teheran (especially at the behest of China, one of their largest customers), but that doesn’t mean that SA no longer values Israel’s role as a big well-armed obstacle to Iranian hegemony.
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