Rouhani warns Saudi Arabia of Iran's 'might'

"You know the might and place of the Islamic republic. People more powerful than you have been unable to do anything against the Iranian people," Rouhani said.

"The United States and their allies have mobilised all their capabilities against us and achieved nothing."

Rouhani appeared to be alluding to the Iran-Iraq war of 1980-88, in which revolutionary Iran successfully resisted an invasion by Saddam Hussein's regime supported by Gulf Arab and Western governments.

His comments came after Saudi Crown Prince Mohammed bin Salman accused Iran of delivering missiles to Yemeni rebels for use against targets in the kingdom that he described as "direct military aggression."

Iran strongly denied supplying any missiles to the rebels saying that it would have been impossible to do so in any case in the face of a Saudi-led air and sea blockade.

Rouhani reiterated that Iran wanted a peaceful settlement of the conflict between the rebels and the Saudi-backed Yemeni government and of other wars around the region that have placed it at loggerheads with Riyadh.

"We want the welfare and development of Yemen, Iraq and Syria, and of Saudi Arabia too. There are no other paths forward than friendship, brotherhood and mutual assistance," he said.

"If you think that Iran is not your friend and that the United States and the Zionist regime (Israel) are, you are making a strategic and analytical error."

The regional rivals traded accusations on Monday with Saudi Arabia saying the missile attack might amount to an act of war and Tehran accusing Riyadh of war crimes in Yemen.

Saudi Arabia has led a military intervention in Yemen since 2015 in support of its internationally recognised government.

More than 10,000 people have since been killed since the military intervention, according to the United Nations.

A cholera outbreak has claimed more than 2,100 lives in Yemen since April as hospitals struggle to secure supplies amid a coalition air and sea blockade.

The UN has warned Yemen now stands on the brink of famine.

The coalition was briefly included on the annual list of shame last year before a threat by Saudi Arabia to cut off its funding to UN programmes forced a reversal.

Human rights groups have urged governments backing the coalition, including the US, UK and France, to suspend all weapons sales to the Gulf monarchy.

Tensions have been rising between Sunni-ruled Saudi Arabia and predominantly Shia Iran, which back opposing sides in wars and power struggles from Yemen to Syria.