The Council of Ministers banned import of all Saudi Arabia-produced commodities, as well as the exported products originated from the country, even in free and special economic zones.
The Umrah pilgrimage was also decided to remain discontinued until further notice.
This decision was made in an extraordinary cabinet meeting chaired by President Hassan Rouhani on Thursday.
The cabinet went on to review the bill of needed decrees for the administration of the 6th Development Plan.
Some of the decrees were approved and other decrees of the bill were left to be reviewed in coming meetings.