This is called Taarof and can be at times quite extreme: https://en.wikipedia.org/wiki/Taarof.

I have a good friend whose parents are from Persia/Iran. He told me about this culture after we knew each other for quite some time. Even though he has never lived there, he often still has a hard time not to do this, which has resulted in some funny (at least for his friends) or uncomfortable situations over time. Knowing this, many things I ascribed to his character alone suddenly made a bit more sense.