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I happened to be in Iran when the stampede took place in Saudi Arabia and bodies of the pilgrims were returning to Tehran. There was clear anger and resentment among the Iranians against the Saudi government, and Iran's supreme leader threatened Saudi Arabia with "tough and harsh" retaliation.
Many fear that the tensions between Iran and Saudi could erupt in a full-blown military conflict. However, this is a highly unlikely eventuality. The Iranian President has condemned the embassy attack, and Saudi has hinted at renewing diplomatic ties under terms and conditions. In fact, much of the indirect Saudi-Iran war had been already being fought for months hundreds of miles away in Vienna, Austria, behind the closed doors of the cartel-like Organization of Petroleum Exporting Countries (OPEC) headquarters.
The execution of a top Shia cleric Sheikh Nimr al-Nimr on 2 January has provoked a backlash against the Saudi government, ripples of which were also felt in India as Shia Muslims across the country staged demonstrations against the kingdom.