I'm under the impression that the US is mostly following rather than mostly leading in engagement with the Saudi rather than Iran: one country is lead by plutocrats whose relationship with the US is driven by desire to dominate the world oil trade, and the other controlled by powerful revolutionaries and theocrats whose control over an increasingly diverse society depends on invoking the spectre of "Great Satan" as recent history's most dangerous enemy.
1. Climate change is accelerating and changing geopolitics of the region faster. Iran’s power and influence has been continuously decreasing in past 2500 years as the Iranian Plateau has got drier. As an example, Iran’s population centers have been moving north as time goes on. 2. Do not ignore role of management and human resources in power and development. In past 40 years Iranians have been making big management and strategic mistakes. Mistakes that engaged them in an eight year war with their neighbor — Iraq, put their interests at adds with world’s largest economic and military power — the United States, and now fighting a cold war with the majority Sunni in the middle east. What do all these have in common?
Long term one of the largest questions is how cheap desalination can get. At ~100 gallons per cent both areas can effectively stop being deserts, but current prices of 3 gallons per cent act as a significant economic drain.
PS: In the US the average person directly uses ~90 gallons per day @ 3 gallons per cent that's only ~100$ per year for desalination. However, people use vastly more water indirectly, one pound of beef takes ~1,847 gallons.
Their GDP is based on oil. In the long term that's going to dry up, and unless they institute major reforms starting right now they'll be in serious trouble.
In fact, I'm not sure they can do anything besides eat, pray, and watch soccer. It's a really, really strange place.
Going there on business was a very weird experience for me - the country somehow functions, but none of the locals actually do anything, as far as I could tell.
Another option is manufacturing, cheap power means cheap aluminum. And there is significant research into synthetic fuels, even if significantly more expensive than Oil right now they are likely in demand for aircraft in the long term.
The Kurds are an amazing and resilient group that have been an incredible ally to the west.
I don't know any group it's size who has been more historically oppressed, marginalized and killed with almost nobody paying any attention to it.
As if that's not happened in Western societies?
Saudi on the other hand is very "new" to the world in terms of culture and influence, only coming into prominence since the 1940s oil boom. The harsh environment isn't hospitable to living there without extreme energy use.
Both obviously have major regional economic power, but the Saudi society is built on sand (literally and metaphorically). In the very long term Iran's importance will come back so if anything the US and the broader world should be seeking to engage more with Iran and less with Saudi IMO.
That's not getting into a lot of the political stuff obviously, more just an analysis of the "fundamentals."