Iran said the resumption of political relations with Saudi Arabia will accelerate efforts aimed at reaching a cease-fire in war-torn Yemen.
"The relations between Riyadh and Tehran are important at three bilateral, regional, and international levels," Iran's permanent mission to the United Nations said in a statement cited by the state news agency IRNA.
"The restoration of political ties between the two countries will be positive at all three levels, including West Asia and the Islamic world," it added.
The mission said political ties with Riyadh will "accelerate the ceasefire, help start a national dialogue, and form an inclusive national government in Yemen."
Iran and Saudi Arabia on Friday agreed to resume their bilateral relations after several days of talks facilitated by the Chinese government.
Yemen has been ravaged by violence and instability since 2014, when Iran-aligned Houthi rebels captured much of the country, including the capital Sanaa.