We present two robust and well‐dated paleomagnetic poles from upper Eocene and Oligocene volcanics in the Urumieh‐Dokhtar magmatic arc, Central Iran. These two poles place Iran ∼3.7°–3° of latitude south of its present position between ca. 40 and 23 Ma. Our new paleomagnetic declination data indicate that the Central Iran block may have experienced a ∼11.6° clockwise rotation since the Late Eocene. We integrated our new data with the retrodeformed margins of the Zagros collision zone and contemporaneous Arabia positions to better constrain the age and configuration of the Arabia and Eurasia assembly process. In our model, the Arabia‐Eurasia collision occurred first in the western Main Zagros suture between ca. 35 and 30 Ma and then diachronously spread eastwards. Our paleogeographic reconstruction and initial continental collision timing supports the Arabia‐Eurasia collision as a first‐order driver of global cooling, Red Sea rifting, and Mediterranean extension. Plain Language Summary The demise of the Neo‐Tethyan ocean and accompanied continent‐continent collisions created the thick crust and the low relief surfaces of the Iran Plateau and Tibetan Plateau. The onset timing and configuration in the Zagros collisional belt are critical for understanding the uplift of the Iran Plateau, tectonic evolution of the Mediterranean and Zagros regions, as well as the associated Cenozoic climate change. However, the age and configuration of the Arabia‐Eurasia continental collision are hotly debated. Previous works generated competing collision timing estimates ranging from Late Cretaceous to Pliocene, with most estimates from Eocene to Miocene. By conducting geochronology and paleomagnetism on the Eocene‐Oligocene volcanic rocks in Central Iran, we show that the Arabia‐Eurasia collision occurred first in the western Main Zagros suture at the Eocene/Oligocene boundary, and then diachronously spread eastwards. We suggest the Arabia‐Eurasia collision facilitates the slowing of Africa, the opening of the Red Sea, the extension in the Mediterranean, and the Eocene/Oligocene global cooling. Key Points Our paleomagnetic results indicate a ∼3.7°–3° of latitude south of the present position of Central Iran during ca. 40–23 Ma Central Iran has experienced ∼11.6° clockwise rotation since ca. 40 Ma Arabia‐Eurasia collision began at the Eocene/Oligocene boundary in the western Main Zagros suture and diachronously spread eastwards