DUBAI: Iran and Saudi Arabia on Sunday arrived at an understanding on key issues of regional significance. During talks, visiting Iranian President Mahmoud Ahmadinejad and King Abdullah bin Abdulaziz of Saudi Arabia agreed to work together to heal the Sunni-Shia rift plaguing West Asia.

The divide is threatening to erupt into a civil war in Iraq, and is a factor in the strife in Lebanon. Saudi Arabia exercises influence among the Lebanon's wealthy Sunnis, while Iran is the main supporter of the Shia militant group, Hizbollah. The two can, therefore, leverage to bring the Sunnis and the Hizbollah together. They have decided to work for Palestinian unity.

Analysts say Iran appears to be signalling its support for the Makkah agreement, steered by Saudi Arabia last month.

Riyadh's initiative has yielded an agreement between the Palestinian militant group, Hamas, and its rival Fatah to form a unity government.

Iran has been one of the main supporters of Hamas, but the Makkah accord has raised Saudi Arabia's profile within the Palestinian camp considerably.

Iran has declared support for Saudi efforts to "quieten the situation in Lebanon and end its political crisis," the official Saudi Press Agency said.

Mr. Ahmadinejad said, "there exists no impediment in the way of the expansion of bilateral ties between the two countries."

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