By Andrew Hammond

RIYADH, Jan 9 (Reuters) - Saudi Arabia said on Wednesday it was determined to maintain good relations with Iran despite U.S. President George W. Bush's efforts to rally Gulf Arab allies to contain the Islamic Republic.

Bush arrived in Israel on Wednesday at the start of a regional tour that will bring him to Gulf Arab countries including Saudi Arabia next week.

Bush who hopes to promote Israeli-Palestinian peace efforts, has said he would try to enlist Arab support for containing Iran, a goal underscored by a confrontation between American and Iranian vessels in the Strait of Hormuz in the weekend.

"We'll listen to everything the president says. He can raise any issue he likes. We're a neighbour to Iran in the Gulf, which is a small area, so we're keen for harmony and peace among countries in the area," Foreign Minister Saud al-Faisal told a news conference.

"We have relations with Iran and we talk with them, and if we felt any danger we have relations that allow us to talk about it. So we welcome any issue the president (Bush) raises and we will discuss them from our point of view."

Although Saudi Arabia and other Gulf Arab states share U.S. concerns about Iranian political and military power, they are increasingly relying on their own diplomacy to talk directly with Tehran.

Saudi Arabia invited Iranian President Mahmoud Ahmadinejad to the Muslims' pilgrimage in Mecca in December and Qatar invited Ahmadinejad to a summit of the Gulf Cooperation Council (GCC) last month.

The GCC is a loose political and economic alliance comprising Iran's six Gulf Arab neighbours, all U.S. allies.

Washington accuses Iran of secretly seeking to build nuclear weapons using an energy programme, a charge Tehran denies.

The dispute has presented challenges for Gulf Arab governments, who share U.S. concerns but fear the fall-out of any military confrontation on their doorstep and involving U.S. bases that they are host to.

Prince Saud said "restraint" was necessary after the incident between U.S. and Iranian vessels, though he did not blame one side or the other.

Washington says Iranian boats aggressively approached three U.S. naval ships in the Strait of Hormuz, a major oil shipping route off Iran's coast, and said the ships would explode.

"We hope this incident will not be repeated. We face a constant danger of escalation, so self-restraint is necessary for all players in the region," he said.

"This region is very sensitive, and sensitive for the world economy in particular," he said. (Editing by Sami Aboudi)

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