Saudi Crown Prince Mohammed bin Salman has called Israel a "potential ally" and said he wants to settle relations with Iran.

“For us, we hope that the conflict between the Israelis and Palestinians is solved,” the prince told The Atlantic, according to a transcript published by the official Saudi Press Agency.

“We don’t look at Israel as an enemy, we look to them as a potential ally, with many interests that we can pursue together… But we have to solve some issues before we get to that,” he added.

Saudi Arabia has no diplomatic relations with Israel, but Gulf allies Bahrain and the United Arab Emirates normalised relations with the Jewish state in 2020.

“They are neighbors. Neighbors forever. We cannot get rid of them, and they can’t get rid of us,” the prince said of Iran. “So it’s better for both of us to work it out and to look for ways in which we can coexist,” the transcript said he told the US monthly publication.

“Hopefully, we can reach a position that’s good for both countries and is going to create a brighter future for this country and Iran,” he added.