UK Introduces New Sanctions Measures Targeting Iran’s Financial, Trade and Transport Sectors

The United Kingdom has introduced legislation to expand its sanctions regime against Iran, with new restrictions covering financial services, trade, energy, transport and shipping. The measures are intended to address Iran’s nuclear programme and other activities identified by the UK government as hostile or destabilising.

The new legislation, the Iran (Sanctions) (Amendment) Regulations 2026, amends both the Iran (Sanctions) Regulations 2023 and the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019. The government laid the legislation before Parliament on 8 September 2026, with the amendments scheduled to enter into force on 29 September 2026, subject to the required parliamentary process.

The measures restore and expand a range of sectoral restrictions that had previously been lifted under the 2015 Joint Comprehensive Plan of Action. The new regime introduces additional restrictions affecting Iran's access to the UK financial system and its ability to obtain goods, technology and services from UK-linked markets.

Financial restrictions form a significant part of the amendments. The new measures include prohibitions concerning loans, credit and investment involving persons connected with Iran, restrictions on banking relationships and market access, insurance restrictions and restrictions relating to dealings in Iranian sovereign bonds.

The legislation also provides for restrictions on correspondent banking and financial assistance involving Iranian companies. The UK government has stated that the financial measures are intended to reduce Iran's ability to access the British financial system and raise funds for activities connected with its nuclear programme.

The trade restrictions have also been expanded. The amended framework covers additional goods, technology and services across a number of sectors, including energy, gold, precious metals and diamonds, maritime goods and technology, natural gas, oil and petroleum products, petrochemicals, graphite and relevant metals, and specified software and technology.

The new restrictions are not limited to direct exports from the UK. The official guidance states that the prohibitions can extend to supply and delivery, including third-country trade, transfers of technology, making goods and technology available and associated ancillary services.

The amendments introduce nine new schedules identifying categories of controlled goods and technology. Schedule 1A covers energy-related goods and technology; Schedule 1B covers gold, precious metals and diamonds; Schedule 1C covers graphite and relevant metals; Schedule 1D covers maritime goods and technology; Schedule 1E covers natural gas; Schedule 1F covers oil and petroleum products; Schedule 1G covers other restricted goods and technology; Schedule 1H covers petrochemicals; and Schedule 1I covers sectoral software and technology.

Additional restrictions apply to goods and technology associated with Iran's conventional weapons and nuclear capabilities. The amendments also strengthen existing nuclear-related controls by updating definitions of nuclear-list goods and technology in accordance with International Atomic Energy Agency lists and expanding the range of relevant dual-use items.

The nuclear-related restrictions extend to associated technical assistance, financial services and brokering. The official guidance specifically states that these restrictions can cover indirect and third-country activity. The legislation also provides additional enforcement powers concerning vessels involved in nuclear-related trade.

Transport and shipping are another area covered by the new measures. The amendments give the UK additional powers to specify ships and restrict their operation and related services. They also provide for measures including port-access restrictions and detention in circumstances covered by the sanctions framework.

Iranian cargo aircraft will also be prohibited from landing in the United Kingdom, subject to specified exceptions. This measure builds on restrictions and the termination of bilateral air services arrangements introduced previously.

The UK government has also expanded its ability to sanction vessels involved in activities supporting Iran's nuclear programme or other activities identified under the sanctions regime. The measures are intended to strengthen the government's ability to take action against ships involved in activities connected with Iran.

The latest legislation follows the UK's implementation of the United Nations sanctions "snapback" mechanism in October 2025. On 1 October 2025, the Iran (Sanctions) (Nuclear) (EU Exit) (Amendment) Regulations 2025 came into force. The UK subsequently designated 71 individuals and entities in sectors linked to Iran's nuclear programme, including financial institutions and energy companies.

The government has stated that the new legislation forms part of a wider programme of measures concerning Iran's nuclear activities. The UK has cited Iran's accumulation of more than 400 kilograms of uranium enriched to 60% as part of the circumstances surrounding its decision to introduce the additional restrictions. Iran maintains that its nuclear activities are for peaceful purposes.

The amendments include specific exemptions and licensing arrangements. One such arrangement concerns the Shah Deniz gas field in Azerbaijan, in which Iran has an interest. The UK government said that general licences would permit certain activities necessary for the continued operation of the project, which supplies energy to European markets.

The Shah Deniz arrangements are intended to allow specified activities connected with the project to continue despite the wider Iran sanctions measures. The UK has stated that the arrangements are consistent with similar exemptions adopted by the European Union and the United States.

The Office of Trade Sanctions Implementation has issued a notice to exporters setting out the changes. Businesses involved in exports are advised to determine whether their goods fall within the newly introduced schedules and to assess whether their activities are affected by the new prohibitions or require a licence.

The notice also confirms that the new restrictions can apply to activities involving third countries. This includes certain supply and delivery arrangements, transfers of technology and associated services, as well as financial services and brokering connected with restricted activity.

The new legislation therefore represents a broad expansion of the UK's existing Iran sanctions framework. It introduces additional restrictions affecting financial activity, trade in specified goods and technology, energy-related transactions, shipping, insurance, banking, aviation and nuclear-related activity.

The measures are due to take effect on 29 September 2026. Until that date, the existing Iran sanctions framework remains applicable, while businesses have been provided with advance information concerning the changes and the additional requirements that will apply once the amendments take effect.

The UK government's announcement states that the measures are intended to restrict Iran's ability to develop its nuclear programme and to address other activities identified by the government as hostile. The legislation also contains licensing provisions intended to permit specified legitimate activities and avoid particular impacts on energy supplies and other activities covered by the exemptions.

The amended sanctions regime will consequently introduce additional restrictions from 29 September covering financial relationships, investment, insurance, sovereign bonds, trade, technology, energy, maritime activity, aviation and nuclear-related goods and services. Businesses operating in areas covered by the new schedules and restrictions will be subject to the amended framework once it comes into force.

By fLEXI tEAM