A statement after the weekly cabinet meeting chaired by King Salman said Saudi Arabia "hopes the agreement will reinforce security and stability in the region and the world".
But it insisted security hinged on "the respect of the principle of good neighbourly relations and non-interference in Arab affairs," said the Saudi Press Agency.
The statement was issued on the 12th day of Saudi-led air strikes against Shiite rebels in Yemen who Riyadh says are backed by Iran.
King Salman said after the deal was announced that he was looking forward to a "final binding" agreement that would bolster regional and world security.
Iran and Saudi Arabia, the foremost Shiite and Sunni Muslim powers in the Middle East, have had troubled relations in recent years.
Riyadh says Iran is trying to expand its influence across war-hit Syria, Shiite-majority Iraq and in Lebanon.