"Persian rug" technically refers to a rug made in Iran (historically Persia), with a set of recognised regional sub-styles tied to specific weaving cities and tribes. "Oriental rug" is a much broader, older trade term that covers hand-knotted rugs from across a wide swathe of Asia — Iran, Turkey, India, Pakistan, Afghanistan, and beyond — grouped together mainly by construction method and general aesthetic tradition rather than precise origin.
Why it matters to a buyer
The terms get used loosely in retail, but the distinction matters for accurate product descriptions and customer trust: a "Persian-style" rug made in India is an homage to that design tradition, not a rug from Iran, and should be described that way. "Oriental style" is the more accurate umbrella term when a design draws on this broader tradition without claiming a specific national origin.