Brussels, 11 March 2023 (dpa/MIA) - The European Union welcomed the resumption of diplomatic ties between Iran and Saudi Arabia as an "important step" on Saturday.

Both Iran and Saudi Arabia are central for the security of the Middle East and "can contribute to the stabilization of the region as a whole," the statement said.

Iran and Saudi Arabia agreed on Friday in talks hosted by China to resume diplomatic relations and re-open embassies within two months, after years of tensions between the regional rivals.

The EU acknowledged "the diplomatic efforts" leading to the accord in a nod to Beijing's role, adding the bloc "remains ready to engage with all actors in the region."

Saudi Arabia severed diplomatic relations with regional rival Iran following an attack by Iranian Islamists on the Saudi embassy in Tehran in 2016.

Both countries have faced off in regional proxy conflicts, including in Syria and Yemen.