DUBAI- Iran said on Sunday it appreciated Saudi Arabia's efforts in the the return of an Iranian ship that had docked at Jeddah port because of technical problems in May, the semi-official Fars news agency quoted a Foreign Ministry spokesman as saying.

"Iran appreciates efforts by the authorities of Saudi Arabia, Switzerland, and Oman to secure the safe return of Iran's Happiness 1 oil tanker," Abbas Mousavi said.

Iranian media reported in early July that Saudi Arabia - Iran's regional rival - was not allowing the ship to leave Jeddah because of a dispute over the payment of repair costs.

(Writing by Parisa Hafezi) ((parisa.hafezi@thomsonreuters.com; +90 532 176 3452; Reuters Messaging: parisa.hafezi@thomsonreuters.com))