Last month, long-time enemies Saudi Arabia and Iran brokered a peace deal with the help of China.

The implications and repercussions of this deal – which barely made a blip in the US media – are far-reaching and disturbing.

The fact that China was able to broker a deal between these two contentious neighbors is monumental, and it’s a bad sign for America’s ability to be the world negotiator. On the flip side, China had a relationship with both countries, which the US did not – so they were uniquely positioned to make it happen.

What happens next is both good and bad for the US. On the plus side, there will likely be more stability in the region and less of a chance of armed conflict.

On the downside, China’s ability to score a deal where America has long failed is another sign that American influence on the international stage is waning.

Additionally, the countries are joining BRIC – an alliance between Brazil, Russia, India China – that would include around half of the world’s population and put western agendas at risk. It would also represent a massive international power in that America doesn’t have a seat at the negotiating table.

This heightened tension comes as relations between China and the US are already at their worst in decades, with Chinese leader Xi Jinping reportedly preparing his country for war.