Tehran - In a speech broadcast Sunday, President Hassan Rouhani said that Iran is ready to restore ties with Saudi Arabia if it stops bombing Yemen and cuts its alleged ties with Israel.

Saudi Arabia severed diplomatic relations with Iran in January 2016 after Iranian demonstrators attacked Saudi diplomatic missions in response to the Saudi execution of a prominent Shiite dissident leader.

Tensions spiked again last month after the Houthis fired a ballistic missile that was intercepted near Riyadh.

Rouhani said that Iran and Saudi Arabia could have "good relations" if the Saudis end their "misguided friendship" with Israel and halt the "inhuman bombardment" of Yemen, where a Saudi-led coalition is battling Iranian-allied rebels known as Houthis.

Iranian media quoted Rouhani as saying: "If Saudi Arabia, our neighbouring country, stops bombing Yemen from tomorrow and stand up against Israel and relies on its own people, we do not see any barriers in front of improving our relations with them."

"We are not like America that has broken its promises so far in the nuclear deal. When we sign an agreement, we will remain loyal to it and keep our promises."

The president went on as saying "we are Muslim and Iranian, and we have a long and old culture, we are not the one who violates the nuclear agreement. In case the other side does this, we will have our own options."

At the end of his speech, Rohani concluded that "Palestine has been and will remain our cause, and the United States and the Zionist regime will not succeed in their recent conspiracy, and God willing, the Islamic nations will liberate al-Quds soon."

BRITISH FM VISITS IRAN

Britain's foreign minister Boris Johnson met with Iranian President Hassan Rouhani on Sunday, wrapping up a "worthwhile" visit in which he pushed for the release of imprisoned dual nationals.

In a series of meetings over two days, the foreign secretary took flak from Iranian officials for not doing more to build on the nuclear deal signed with world powers in 2015.

"Relations between the two countries have not matched the potential expected in the post-JCPOA (nuclear deal) atmosphere," Rouhani told Johnson, according to a statement from his office.

There was similar criticism from the powerful parliament speaker, Ali Larijani, who met with Johnson on Saturday and said other European countries had put in "much more effort".

"You haven't even solved the banking problems of the Iranian embassy in London," Larijani said, according to the IRNA news agency.

A key focus of Johnson's visit had been efforts to secure the release of imprisoned British-Iranian Nazanin Zaghari-Ratcliffe.

Zaghari-Ratcliffe, 39, is already serving a five-year sentence for her part in mass protests in 2009 -- which she denies -- and was due to face fresh charges in court on Sunday of "spreading propaganda".

The trial was expected to take place behind closed doors and it was not clear when any verdict would be announced.

"The foreign secretary discussed the full range of regional and bilateral issues, including banking matters and our concerns about the consular cases of dual nationals," a British foreign office spokesperson said.

"It has been a worthwhile visit and we leave with a sense that both sides want to keep up the momentum to resolve the difficult issues," it added.

The Zaghari-Ratcliffe case has become a top priority for Johnson after he mistakenly said last month that she had been training journalists in Iran -- a "slip of the tongue" used by the Iranian authorities to help justify Iran has been frustrated that the nuclear deal, which lifted sanctions in exchange for curbs to its nuclear programme, has not produced the expected windfall in trade deals - mainly due to continuing US sanctions.

Banking restrictions have also complicated long-running efforts to return an estimated 450 million pounds ($600 million) owed by Britain from a military contract cancelled due to the 1979 Islamic revolution.

The husband of the jailed British-Iranian, Richard Ratcliffe, has claimed she is a pawn in Iran's efforts to extract the historic debt.

Johnson left Iran later Sunday for the United Arab Emirates.