Tehran
TehranReuters

In a sharp escalation of diplomatic tensions, Iran announced Thursday it has downgraded ties with Australia, following Canberra’s expulsion of the Iranian ambassador over allegations that Tehran orchestrated two antisemitic arson attacks in Sydney and Melbourne, Reuters reported.

Foreign Ministry spokesperson Esmaeil Baghaei confirmed the move, stating, "According to diplomatic law and in response to Australia's action, the Islamic Republic has also reciprocally reduced the level of Australia's diplomatic presence in Iran."

He added that the Australian ambassador had departed the country.

Australian Prime Minister Anthony Albanese previously stated that operations at Australia’s embassy in Tehran were suspended, and all diplomats had been relocated to a third country for safety.

Last week, Albanese announced that the Iranian government was behind at least two attacks against the country's Jewish community.

According to Australia's domestic spy agency, the Australian Security and Intelligence Organization (ASIO), Iran directed the attacks on the Adass Israel Synagogue of Melbourne and Lewis’ Continental Kitchen.

Albanese described the incidents as “extraordinary and dangerous acts of aggression orchestrated by a foreign nation on Australian soil.” He added that ASIO assesses it is likely Iran directed further attacks as well. The Prime Minister stated the attacks were “attempts to undermine social cohesion and sow discord in our community” and were “totally unacceptable.”

In response, said Albanese, Australia will expel the Iranian ambassador, Ahmad Sadeghi, suspend operations at its embassy in Tehran, and list Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist organization.

Iran has categorically denied the accusations.

"The accusation of antisemitism against Iran is ridiculous and baseless," Baghaei said, emphasizing Tehran’s disapproval of deteriorating relations with Canberra.

Despite the diplomatic downgrade, Iranian officials confirmed that Tehran’s embassy in Canberra continues to offer consular services.