Saudi Arabia has given Iranian diplomats two days to leave the country, amid a row over the Saudi execution of a top Shia Muslim cleric.
The Saudi government announced on Sunday that it had broken off diplomatic ties with Iran, the BBC reports.
Iran has accused Saudi Arabia of stoking tension in the region.
Saudi Arabia and Iran are the major Sunni and Shia powers in the region respectively and back opposing sides in the conflicts in Syria and Yemen.
The United States has appealed for calm, calling for continued diplomatic engagement.
Sheikh Nimr al-Nimr and 46 others were executed on Saturday after being convicted of terror-related offences.
Late on Sunday, police came under heavy gunfire in his home town of Awamiya in Saudi Arabia’s Eastern Province, leaving one civilian dead and a child injured, the Saudi Press Agency said.
Security forces are still hunting the attackers, calling the incident a “terrorist” act, a police spokesman was quoted as saying.
Shia Muslims have complained of marginalisation in Eastern Province.
