Saudi and Iran agree to reopen consulates - source

Saudi and Iran agree to reopen consulates - source

Regional arch-rivals Saudi Arabia and Iran are showing signs of warming relations, a foreign diplomat said.

A foreign diplomat residing in the kingdom who is privy to the negotiations said that the two sides "were on the verge of agreeing... to ease tensions between them and the (diplomatic) proxy war in the region" during the last round of talks.

The foreign diplomat said the two sides would "most likely put the final touches to an agreement" in a new round of talks that could come within days.

"They, in principle, have reached an agreement to reopen consulates... and I think an announcement of normalisation of ties may come in the next few weeks," the diplomat told AFP on condition of anonymity.

Saudi Arabia and Iran cut ties in 2016 after protesters attacked Saudi diplomatic missions in the Islamic republic following the kingdom's execution of a revered Shiite cleric.

In recent weeks, officials from both countries, on opposing sides in multiple Middle East conflicts, have spoken positively about breakthrough talks held in Baghdad since April.

The discussions were launched under Iran's former moderate president Hassan Rouhani and have continued under his ultraconservative successor, Ebrahim Raisi.