Iran seized a United Arab Emirates (UAE) registered ship violating its territorial waters this week, Iran's foreign ministry said on Thursday, adding that UAE coastguards killed two Iranian fishermen on the same day.

Tensions have risen between the two oil-rich countries which face each other across the Gulf since last week's agreement between the Gulf state and Tehran's arch-foe Israel to normalise ties.

“On Monday, an Emirati ship was seized by Iran's border guards and its crew were detained due to illegal traffic in our country's waters,” state TV quoted the statement as saying.

“On the same day, UAE guards shot dead two Iranian fishermen and seized a boat.”

The statement said Iran summoned the UAE charge d'affairs in Tehran over the incident. The UAE foreign ministry declined to comment when contacted by Reuters.

State news agency WAM reported on Monday that the Gulf state's coastguards had tried to stop eight fishing boats which violated the state's territorial waters northwest of Sir Bu Nu'Ayr island, without reporting any casualties.

“The UAE authorities [...] in a note on Wednesday, have expressed their deep regret over the incident and announced their readiness to compensate for all the damage caused,” Iran's statement said.