Citing Saudi and US officials, The Wall Street Journal on Wednesday reported that Saudi Arabia had shared intelligence with the United States warning of an imminent attack from Iran on targets in the kingdom.

In response, Iran's foreign ministry spokesman Nasser Kanani said his country's "policy is based on mutual respect and international principles" and that it "continues its policy of good neighbourliness".

Iran "believes that the promotion of stability and security in the region requires increasing interaction with its neighbours and it intends to continue seriously in this direction," he told reporters on Wednesday.

In its report, The Wall Street Journal cited officials as saying Saudi Arabia, the US and several other neighbouring states had raised the level of alert for their armed forces in response to the intelligence warning.

Saudi officials told the US newspaper Iran was poised to attack the kingdom and Arbil in Iraq's northern Kurdish region in a bid to distract from protests that flared in the Islamic republic over the death of Mahsa Amini in September.

Kanani dismissed the report as "biased and baseless" and said it came from Iran's arch enemies the United States and Israel.

Their aim, he said, was to create "a negative atmosphere against the Islamic Republic of Iran and destroy the positive process underway with the countries in the region".