To an Outsider: In a region that is overwhelmingly Muslim, the terms Arab and Muslim have become almost synonymous, despite the fact that there are large numbers of Christian Arabs and larger numbers of Iranian or Turkish Muslims. Iranians and Turks have kept their language despite having taken on the Islamic religion.
Internally: Iranians, having strong nationalistic identifications, have always insisted on their distinction from Arab countries, language, and heritage; especially due to historical animosities since the 7th century CE when they believe the Arabs conquered their civilized country of IRAN and imposed a new religion by brutal force. Some other nations, such as Egyptians and Turks that emphasis Nationalism, seem to share this point of view.
ARABS:– reciprocate the same feeling of animosity and believe Iranians being Shia are not real Muslims and are heretics and further more they feel Iranians display intellectual superiority against them.
NOTE:– After the Arab invasion for a few centuries Arabic became the dominant academic language, therefore many Iranian scientists and scholars wrote their books in Arabic. Hence, they are sometimes referred to as Islamic scientists and scholars (like Zakariya Razi) and yet, they are Iranian. Interestingly some Iranian poets who have composed their poetry in Farsi (like Rumi) are also referred to as Islamic poets