Iran and Djibouti restored diplomatic relations after severing relations with it over 7 years ago. Earlier this year in March, Iran and Saudi Arabia reconciled and restored relations with each other under a deal that had been brokered by China. This reconciliation has spurred other countries to restore relations with Iran. Djibouti occupies a strategic location on the Bab-el-Mandeb Strait separating the Gulf of Aden from the Red Sea.
Source: https://www.newarab.com/news/iran-djibouti-restore-ties-after-7-years-fm