Israel's ambassador to Dublin was recalled following Ireland's decision on a Palestinian state in May, Saar's statement added.
Last week, Ireland announced its support for South Africa's legal action against Israel in the International Court of Justice (ICJ), accusing Israel of genocide.
"The decision to close Israel's embassy in Dublin was made in light of the extreme anti-Israel policies of the Irish government," the foreign ministry said in a statement.
"The actions and anti-Semitic rhetoric used by Ireland against Israel are rooted in the delegitimisation and demonisation of the Jewish state, along with double standards. Ireland has crossed every red line in its relations with Israel," Saar said in the statement.
Irish Prime Minister Simon Harris said the decision was deeply regrettable.
"I utterly reject the assertion that Ireland is anti-Israel. Ireland is pro-peace, pro-human rights and pro-International law," he said in a post on X.
"Ireland wants a two state solution and for Israel and Palestine to live in peace and security. Ireland will always speak up for human rights and international law."
Irish Foreign Minister Micheal Martin said the two countries would maintain diplomatic relations and there were no plans to close Ireland's embassy in Israel.
Martin said in March that while it was for the ICJ, also known as the World Court, to decide whether genocide is being committed, he wanted to be clear that Palestinian militant group Hamas' October 7 attack on Israel and the ensuing assault in its stronghold Gaza "represents the blatant violation of international humanitarian law on a mass scale".
A statement from Israel's foreign ministry also announced the establishment of an Israeli embassy in Moldova.
