Trade schism widens as Iran accuses Saudi warplanes of bombing its embassy

Iran and Saudi Arabia took further steps to sever commercial ties on Thursday, intensifying a feud between the regional rivals. Tehran announced a ban on imports from Saudi Arabia and reaffirmed a ban first imposed in April on Umrah pilgrimages to Mecca - which are both lucrative for Saudi Arabia and important to Muslims. Meanwhile, Saudi consumer groups called for boycotts of Iranian products, scolding Swedish home goods retailer Ikea for selling a Persian carpet with a “made in Iran” label at its stores in Saudi Arabia.

The escalation is alarming because Iran and Saudi Arabia are on opposing sides of several conflicts in the region including Syria and Yemen

Jane Kinninmont, Chatham House think-tank

Saudi Arabia severed ties with Iran on Sunday over the storming of its embassy in Tehran, intensifying a crisis set in motion by the execution of a prominent Shi'ite cleric. On Thursday, Iran accused Saudi-led coalition warplanes of damaging its embassy and injuring staff in an air strike on Yemen’s capital, Sanaa. It said the planes had deliberately targeted the site during dozens of air strikes carried out on Thursday by the coalition, which is battling Houthi rebels. “Iran holds the government of Saudi Arabia responsible for this act and wounding of a number of embassy staff and damages made to its building,” its foreign ministry said. However, residents said missiles had struck 700m (2,300 ft) from the embassy, causing shrapnel and rocks to land near the building.

This deliberate and intentional act by the Saudi Arabian government is in violation of all international conventions and legal treaties regarding the protection and impunity of diplomatic compounds under all circumstances

Foreign ministry spokesman Hossein Jaberi Ansari