The foreign ministry said the boat was seized on Monday after UAE coastguard vessels "opened fire on several Iranian fishing boats ... leading to the deaths of two fishermen".
Tensions have risen between the two oil-rich countries that 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 the border guards of Iran and its crew were detained due to illegal traffic in our country's waters," state TV quoted a ministry statement as saying.
"On the same day, UAE guards shot dead two Iranian fishermen and seized a boat... The UAE has expressed regret for the incident and in a letter on Wednesday announced its readiness to pay compensation."
Iran summoned the UAE charge d'affairs in Tehran over the incident.
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