The war of words between Tehran and Riyadh has escalated during the last few days. Bilateral relations between Iran and Saudi Arabia have been strained because of a number of geopolitical reasons, including the desire to lead the Muslim world, regional hegemony, oil export policies and relations with the super power, the US. Recently, efforts have been made by Pakistan to defuse tensions between the two archrivals, Iran and Saudi Arabia. Various incidents have escalated the tensions between Tehran and Riyadh. Last year, the 2015 hajj stampede escalated these tensions due to the deaths of Iranian pilgrims in the stampede that claimed many lives. Iranian officials have accused Saudi Arabia of mismanagement, which resulted in such a huge disaster. The execution of Sheikh Nimr al Nimr, a Shia religious leader, again raised tensions between the two states. The protesters started demonstrations in Tehran in front of the Saudi embassy and later set it ablaze. Saudi officials immediately announced the breaking of all diplomatic ties with Tehran because of this incident. The situation became more complex when Iran’s embassy was attacked in Yemen and it was claimed by Iranian officials that Saudi warplanes had “deliberately” targeted its embassy in Yemen. Keeping in view all these incidents and their resulting repercussions, the rational choice available to both countries is to pursue diplomacy. Pakistan shares a history of good relations with both countries. Prime Minister (PM) Nawaz Sharif along with Chief of Army Staff (COAS) General Raheel Sharif met with Saudi and Iranian officials, urging them to resolve their differences in a peaceful manner. Saudi Arabia has been supporting Pakistan financially and has been investing in the country for many years. It is estimated that 1.5 million Pakistanis are working in the Kingdom and are the largest source of remittances. On the other hand, Pakistan also enjoyed a good relationship with Tehran during the time of the Shah. After the revolution, bilateral relations between Iran and Pakistan went through many ups and downs according to the geopolitical environment. Iran, being a neighbouring state of Pakistan, is equally important for Pakistan as its historical ally Saudi Arabia. The removal of economic and political sanctions on Iran by the US and EU will again bring numerous opportunities for Pakistan and Iran. After the reintegration of Iran in geo-economics Pakistan will be able to restart its economic ties with Iran, which will serve the many energy needs of Pakistan. It is a difficult decision for Pakistan to support one and go against the other in this situation. Pakistan has made a rational decision and has adopted a policy of neutrality. Pakistan is at war at home and has to defend its eastern and western borders so in this scenario Pakistan has to show tenacity. In order to avoid this complex situation, Islamabad has decided to act as a mediator and resolve the tensions between the two Muslim countries. This policy of neutrality will help Pakistan maintain balanced policies towards both of its friends. In the past Pakistan has acted like a bridge between the US and China so now it can do the same for Iran and Saudi Arabia. The complex political dynamics of the Middle Eastern region makes it highly volatile and uncertain. Many are of the view that Pakistan would be able to lessen the tensions between the two countries. It would be an idealistic thought to believe that both the states will come closer to each other and tensions will be decreased at once. But, as per present circumstances, there is an urgent need to adopt a few confidence-building measures to avoid further escalation between the two Muslim countries. The regional stability of the Middle Eastern region is of great significance for international security. The presence of terrorist organisations, interests of great powers and the role of great powers in the domestic politics of states has made the situation most complicated. The writer is an M.Phil Scholar at School of Politics and International Relations, Quaid I Azam University Islamabad