This study discusses Saudi-Iranian rivalry in the Persian Gulf, focusing on political, economic, strategic, historical, and religious dimensions. It details the escalation of tensions between Saudi Arabia and Iran since 1979 up until 2019, before delving into the agreement to restore diplomatic relations between the two countries in March 2023. The study concludes that countries in the international system tend to maximize their capabilities and enhance their power; which sometimes leads to escalation in hostilities and the pursuit of an arms race. Iran's security strategy also includes enhancing its power and capabilities in pursuit of regional hegemony. Saudi Arabia sees Iran as its greatest security threat, whereby Iran poses multiple air, sea, and cyber security challenges to the Kingdom.