By MALAK HARB (Associated Press) DUBAI, United Arab Emirates (AP) — Long-time Mideast rivals Iran and Saudi Arabia took another significant step toward reconciliation Thursday, formally restoring diplomatic ties after a seven-year rift, affirming the need for regional stability and agreeing to pursue economic cooperation. The agreement was reached in Beijing during a meeting between the Iranian and Saudi foreign ministers, a month after China had brokered an initial reconciliation agreement between the two regional powerhouses. The latest understanding further lowers the chance of armed conflict between the rivals, both directly and in proxy conflicts around the region.