Abstract. This second piece in the series of two articles addresses the regional rivalry between two lead states in the Middle East – the Saudi Arabia and Iran. This factor has deep historical, ideological, economic, political and sociocultural roots and presently manifests itself in a variety of contexts ranging from the Arab-Israeli confrontation to oil production policy. The struggle for spiritual/religious leadership also gains a new momentum. The two regional powers’ interests most evidently clashed on Syria, even as select other players are also interest in sustaining this regional rivalry.