The Saudi royal was slapped down as “immature” as the war of words rages on.
Prince Mohammed bin Salman was warned to “ponder the fate” of Middle Eastern dictators.
Iran’s Supreme Leader Ayatollah Ali Khamenei made the ominous comments after he was accused of being the “new Hitler” of the region by the Saudi Prince.
Iran’s foreign minister Bahram Qasemi blasted bin Salman’s “inconsiderate, and baseless remarks and behaviour”.
He said: ”I strongly advise him to think and ponder upon the fate of the famous dictators of the region in the past few years now that he is thinking of considering their policies and behaviour as a role model.”
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In the statement that sparked the retaliation, Prince Mohammad bin Salman said: “We learned from Europe that appeasement doesn’t work.
“We don’t want the new Hitler in Iran to repeat what happened in Europe in the Middle East.”
Saudi Arabia and Iran have rival interests and alliances across the Middle East.
Relations between the two nations have raged amid the ongoing civil war in Yemen in which they back different sides.
Saudi Arabia and Iran are said to be on the brink of war as tensions in the Middle East are reaching a breaking point.
The regions of Qatar, Yemen, Syria and Lebanon are also embroiled in the bitter conflict.
Tensions increased a few weeks ago between the two countries when Saudi Arabia accused Iran of being behind a ballistic missile attack on a Riyadh airport.
The missiles were intercepted and Saudi Arabia said they perceived the attack as a “declaration of war”.
Saudi Arabia’s Foreign Minister Adel Al-Jubeir said: “The kingdom will not stand by and will not hesitate to defend its security.
“We must stand together”.
The regional director of the Middle East and Africa at the Economist Intelligence Unit, Pat Thakar, said that it would not take much for tensions in the region to flare up.