The confrontation between Saudi Arabia and Iran took a turn for the worse this week when the Gulf Cooperation Council (GCC), a six-member group of Sunni states on the Persian Gulf, announced that it was labelling Lebanese paramilitary group Hizbollah a terrorist organisation.

The announcement of the move included a long list of allegations against Hizbollah, including its support of Iranian military action in Syria and Yemen, its recruitment of young people, its attempts to smuggle arms and efforts to carry out attacks in the GCC countries.

The decision is part of a wider breakdown in relations between the Saudis and Hizbollah's patrons, Iran. Much of the recent tension has focused on Beirut, where the new government is seen by the Saudis as being too much under Iranian and Hizbollah influence.

Last week, the Saudis announced that they were no longer funding a $3bn arms purchase for the Lebanese Army. Ostensibly the reason for cutting off the military aid was Lebanon's refusal to condemn Iran for the storming of the Saudi embassy in Tehran in January.

The change in Saudi policy signifies a departure from the kingdom's old position as a guarantor of Lebanon's security. The Saudis fear that the real military power in Lebanon is Hizbollah, and that they control large parts of the national army.

The move against Hizbollah is an extension of current Saudi strategy, which is to confront Iran's influence across the region.