Iranian officials welcomed the reestablishment of relations between Iran and Saudi Arabia after seven years of diplomatic estrangement. Official Iranian media reported on Friday that the agreement between the two countries came after talks that began on Monday in Beijing at the initiative of Chinese President Xi Jinping. The official IRNA news agency said that as a result of talks between Ali Shamkhani, Secretary General of Iran’s Supreme National Security Council, and Musaid Al Aiban, Saudi National Security Adviser, Minister of State and member of the Council of Ministers, the two countries agreed to restore diplomatic ties and reopen their respective embassies within two months. Iranian Foreign Minister Hossein Amir Abdollahian said on Twitter that the return of “normal relations between Iran and Saudi Arabia provides great impetus for the two countries, the region and the Islamic world.” He continued: “Neighborhood policy, as the main focus of the government’s foreign policy... is moving strongly in the right direction, and the diplomacy is actively preparing more regional steps.” Nour News agency reported that Shamkhani praised China for its role in rebuilding diplomatic relations between Tehran and Riyadh. The agency quoted Shamkhani as saying that the two delegations “conducted frank, transparent, comprehensive and constructive negotiations.” The official contacted Iraqi Prime Minister Mohammed Shia al-Sudani, thanking him for his country’s efforts in hosting five rounds of talks between Saudi Arabia and Iran, according to the state-run ISNA news agency. Saudi Arabia severed relations with Iran in 2016 after the storming of its embassy in Tehran and its consulate in Mashhad. Current and former Iranian officials and activists have expressed their satisfaction with the restoration of relations between Tehran and Riyadh. Reformist activist Abdollah Ramezanzadeh, a former spokesman for the Iranian government during the tenure of President Mohammad Khatami, wrote that the agreement between Saudi Arabia and Iran was a significant step for regional security. The announcement of the agreement had an immediate impact on the currency market in Iran. ISNA reported that the price of the dollar fell to IRR 477,000 in the unofficial market, after it crossed the barrier of IRR 510,000 on Wednesday.