The Saudis’ activities are aimed at preventing what they view as a horrific scenario: While Iran continues its race towards nuclear arms, it would take over Iraq and Lebanon, topple the Egyptian regime, take over the sacred sites in Saudi Arabia, and declare the founding of “the right Islamic empire.”
Fear of the Iranian octopus is what is driving Saudi Arabia today, and it is also what led to the significant closeness between the Saudis and the US. Because of the Iranian threat, the Americans are even willing to forget that Saudi terror cells carried out the atrocities of 9/11. — Smadar Peri in YNet [my emphasis]
The main thing they are doing is keeping the price of oil stable, thus holding a lid on Iranian revenues. Ahmadinijad is overextended, and this hurts.
Meanwhile, the talks between Ahmadinijad and King Abdullah of Saudi Arabia seem to have broken down.