March 5 (Bloomberg) -- Saudi Arabia's government warned against any attack on Iran over its nuclear program, saying the impact on the region would be damaging.

``Iran is an important country in the region, and is able to carry out a positive role, and if the confrontation reaches its climax, it could hurt the region,'' Saudi Foreign Minister Saud al-Faisal said. His remarks were carried yesterday by the state- run Saudi Press Agency.

The U.S. accuses Iran of trying to produce nuclear weapons. Iran denies the claim, saying its nuclear program is designed to generate electricity. Saudi Arabia is a key political and economic ally of the U.S. in the Middle East.

Saudi Arabia, the largest producer in the Organization of Petroleum Exporting Countries, and Iran, the second largest, are seeking to defuse tension in the Middle East, with fears of a civil war looming in Lebanon and a worsening sectarian conflict in Iraq. Iran's President Mahmoud Ahmadinejad visited Saudi King Abdullah on March 3. Ahmadinejad said they discussed the need to protect the Islamic world from enemy ``conspiracies.''

The U.S. administration, while expressing a preference for a diplomatic solution to the Iranian nuclear dispute, hasn't ruled out military action against Iran. ``All options are on the table,'' Vice President Dick Cheney said on Feb. 24. A second U.S. aircraft carrier battle group arrived in the Persian Gulf on Feb. 15 as part of a buildup of forces in the region.

To contact the reporter on this story: Tarek Al-Issawi in Dubai at talissawi@bloomberg.net.

Last Updated: March 5, 2007 05:20 EST