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Iraq offers to mediate between Saudi Arabia and Iran

A growing diplomatic dispute between Riyadh and Tehran, triggered by Saudi’s execution of a prominent Shi’ite cleric, has damaged the outlook for any resolution to the conflict in Yemen, where a coalition led by Saudi Arabia has been fighting the Shi’ite, Iran-allied Houthi movement.

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“This trend of creating tension must stop”, Zarif said of Saudi Arabia, which cut diplomatic ties with Iran on Sunday following an arson attack at the kingdom’s Tehran embassy the day before.

In the evening of the same day crowds of furious Iranian demonstrators stormed the building of Saudi Arabia’s embassy in Tehran and the consulate office in Mashhad.

Prime Minister Ahmet Davutoglu on Monday urged Iran and Saudi Arabia to calm tensions, saying the hostility between the two key Muslim powers would only further escalate problems in an explosive region.

Iranian oil exports are also expected to rise later this year once Western sanctions against Tehran for its nuclear programme are lifted, increasing the oil glut.

“We have treated these actions with magnanimity and nobleness but unfortunately our neighbour, Saudi Arabia, did not respond to it properly”, he said. Riyadh, Bahrain and Sudan severed relations with Tehran while Kuwait recalled its ambassador.

In eastern Saudi Arabia, where al-Nimr agitated for greater political rights for Shiites in the Sunni-ruled kingdom, three days of mourning over his death were to end Wednesday night.

Since Saudi Arabia severed ties to Iran, a host of its allies have cut or reduced their ties as well.

Referring to the execution of Sheikh Nimr al-Nimr by Saudis, al-Jaafari noted “we slam the verdict issued by the Saudi court; Sheikh al-Nimr was a reformist who never believed in using weapons”.

The Iranian government has also distanced itself from the Saudi embassy attack, and even suggested foreign elements organized it.

Zarif said Iran “wants no tension in the region and would always welcome dialogue with its neighbours”.

Back in Iraq, however, thousands of Iranian-backed Shiite militiamen marched in Baghdad and across the south to protest the execution of al-Nimr.

Jaafari, who was to hold talks later with Rouhani, said Iraq was seeking a potential diplomatic role to help resolve the crisis and echoed the concerns about sectarianism.

Oman’s foreign ministry on Wednesday expressed its “deep regret” over the embassy attack but the country did not announce any measures against Iran.

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The war of words has intensified between the two Middle East powers after thekingdom on Saturday executed 47 prisoners, including Shiite cleric Nimr al-Nimr.

Egypt sides with Riyadh and describes Iran's behavior as 'unacceptable'