DUBAI, United Arab Emirates — The U.S. welcomes the news of direct communication between longtime Middle Eastern rivals Saudi Arabia and Iran, a Biden administration official told CNBC on Monday, at a time when tensions are high in the region and Iran’s recently-elected government has not held back in expressing its animosity toward the West.

“Our regional partners like the UAE are first of all absolutely crucial to us as partners for economics, regional security and mutual cooperation,” Jennifer Gavito (Deputy Assistant Secretary for Iran and Iraq, State Department’s Bureau of Near Eastern Affairs) told CNBC’s Dan Murphy from Dubai. 

We are grateful for their contribution to stability in the region. The announcement of direct negotiations between Iran and Saudi Arabia is welcomed. Anything that leads to peace and stability within the region is welcomed.

It took place at Dubai Expo, the six-month-long global mega-event of the Gulf city. The discussions were held there. Gavito, the U.S.’s highest ranking official at the event so far, was there. 

Saudi Foreign Minister Prince Faisal bin Farhan al-Saud confirmed over the weekend that the first talks between the kingdom and Iran’s new government had taken placeAccording to the statement, the most recent round occurred on September 21st. 

These discussions are still in an exploratory stage. He said that the discussions would provide an opportunity to resolve unresolved problems between the sides.

Saudi Arabia and Iran support each other in many regional conflicts and violence, including the ones occurring in Yemen and Syria. Saudi Arabia accused Iran of attacking Iran’s oil infrastructure as well as providing missiles for the Houthi rebels in Yemen to strike at its kingdom. 

Both Riyadh (and Tehran) have not expressed expectations for any major breakthrough but both have indicated their support for lessening tensions. 

Even though there was a brief return to negotiations regarding the Iran nuclear accord in the beginning months of Biden’s presidency, the diplomatic outreach markedly differs from current affairs between Iran and America. Officially known as the Joint Comprehensive Plan of Action in 2015, it lifted sanctions against Iran and provided for curbs on its nuclear program. 

However, the deal was essentially on life support after the Trump administration unilaterally pulled the U.S. out of the accord and imposed severe sanctions on Iran. This has severely crippled the economy. 

Iran has responded to this by slowly reversing its commitment to the deal. increasing uranium stockpiling and enrichment levels far beyond the parameters set out in the JCPOAAnd to a point that many in the international community say is alarming 

Tehran claims that Iran’s actions are in its sovereign right and can be reversed by the U.S. if sanctions are lifted. The Biden administration is ready to negotiate, but it will not lift the sanctions until Iran reneges on its JCPOA violations. 

Ebrahim Raisi is Iran’s new President, an extremist and anti-Western cleric. slammed the U.S. during his first United Nations speech in September, calling Washington’s sanctions — especially during the pandemic — “crimes against humanity.”

The Iranian foreign minister claimed that Washington had tried to restart nuclear talks the month before. Tehran asked the U.S. to release $10 billion of its frozen assetsAs a gesture of goodwill. Iran still hasn’t received an official reply from the U.S.

Gavito stated, “We have seen the reports and we are not in a position talk about any specific sanctions relief that may be offered.” The nature and sequence of the sanctions relief is determined during the negotiation process. This is where Iran really has the advantage.

“We are ready through these discussions that we have conducted with good faith to return mutual compliance to the JCPOA,” she said. “We are hopeful that Iran will also do this. They believe it is in their best interests. However, we believe it’s in their best interest.