"The kingdom supports and welcomes the steps announced by the US president towards withdrawing from the nuclear deal ... and reinstating economic sanctions against Iran," the foreign ministry said.

Trump on Tuesday announced the US withdrawal from the "defective" multinational nuclear deal with Iran, as Washington moved to reinstate punishing sanctions against the Islamic republic.

After consulting with US "friends" across the Middle East, Trump said his country would "not be held hostage to nuclear blackmail".

Following his address, the US leader signed a presidential memorandum to start reinstating US nuclear sanctions on the Iranian regime.

Saudi Arabia accused Iran of "taking advantage of the revenue generated by the lifting of the sanctions to destabilise the region", the foreign ministry said.

The Sunni-ruled Gulf kingdom is locked in multiple proxy wars with its Shiite rival in the Middle East, including in Yemen, Syria and Iraq.