From Yahoo News:
Canada shut its embassy in Tehran on Friday, severed diplomatic relations and ordered Iranian diplomats to leave, accusing the Islamic Republic of being the most significant threat to world peace.
The surprise action reinforces the Conservative government's close ties with Tehran's arch foe Israel but also removes some of Washington's eyes and ears inside the Iranian capital.
It comes as Iran's talks with world powers over its nuclear program have stalled and Israel is weighing the option of a military strike to prevent it from developing atomic weapons. Iran insists its nuclear program is for peaceful objectives only.
The move also underscores the widening gaps between Western countries' attempts to isolate and punish Iran and Tehran's efforts to forge closer ties with energy-hungry Asian trading partners such as India and Pakistan to counter Western sanctions. Iran's recent push to bolster and redefine its links with Asia makes the break with Canada a less serious blow to Tehran than it would have been years ago.