The successful talks between Iran and Saudi Arabia in Beijing are a victory for dialogue and peace, China's top diplomat Wang Yi said on Friday, following the major diplomatic coup for China in Middle East geopolitics.

Iran and Saudi Arabia agreed on Friday to re-establish relations after seven years of hostility which had threatened stability and security in the Gulf and helped fuel conflicts in the Middle East from Yemen to Syria.

"This is a victory for dialogue, a victory for peace, offering major good news at a time of much turbulence in the world," the Chinese foreign ministry cited Wang Yi as saying at the close of the dialogue.

Previously undisclosed talks between the two were held March 6-10 by top security officials from Saudi Arabia and Iran in the Chinese capital, according to a tripartite joint statement of the countries released by China's foreign ministry.

In the statement, the three parties expressed their willingness to make "every effort" to strengthen international and regional peace and security.

The landmark deal is a diplomatic win for China in a region where geopolitics has been dominated by the United States. It also comes as China calls for dialogue over Russia's war in Ukraine, amid accusations from the West that Beijing has not done enough on the issue.

"As a good-faith and reliable mediator, China has faithfully fulfilled its duties as the host," Wang Yi said.

China will continue to play a constructive role in handling hotspot issues in the world and demonstrate its responsibility as a major nation, he said.

"The world is not just limited to the Ukraine issue," said Wang Yi.