Britain widens Iran sanctions on energy and finance, with joint Azerbaijani gas exemptions

Britain is set to expand sanctions against Iran’s energy, financial and transport sectors from September 29, the government said in an announcement on September 8, seen by Newsbase.

The latest British package restores sectoral restrictions lifted under the 2015 nuclear agreement otherwise known as the JCPOA, following Britain’s reinstatement of UN sanctions in October 2025. It extends pressure beyond individual designations to industries and services that the government says support Iran’s nuclear programme.

The Iran (Sanctions) (Amendment) Regulations 2026 amend the country’s existing nuclear and wider Iran sanctions regimes, adding restrictions on trade, financing and access to British ports and services in line with European and following US sanctions.

Trade controls cover energy equipment and technology, oil and petroleum products, natural gas, petrochemicals, maritime equipment, precious metals, diamonds and sectoral software.

The prohibitions extend beyond exports to supply through third countries, technology transfers and related services. In addition, nine new schedules define the controlled goods and technology, including graphite, metals and additional dual-use items.

Financial measures restrict loans, credit and investment involving persons connected with Iran, alongside banking relationships, insurance and dealings in Iranian sovereign bonds.

Further, the released information says the transport provisions expand powers to designate ships, restrict their operations and associated services, deny port access and detain vessels. Iranian cargo aircraft will also be prohibited from landing in Britain, subject to limited exceptions.

British nuclear controls will be updated to match International Atomic Energy Agency lists, with restrictions covering related technical assistance, financial services and brokering.

Businesses have been told to review the new schedules, assess their exposure and establish whether transactions are prohibited or require a licence.

Subject to parliamentary approval, exemptions will permit certain activities supporting Azerbaijan’s Shah Deniz gas field, which supplies European markets. The government said the arrangements maintain longstanding policy and align with similar US and EU exemptions.

Iran’s Naftiran Intertrade Company (NICO) holds a 10% stake in Shah Deniz, the gas project in Azerbaijan, with that ownership continuing despite increased sanctions by the UK. 

Azerbaijani authorities have yet to comment on the announcement regarding its stake in the Shah Deniz field. 

A new Office of Trade Sanctions Implementation general licence is due to take effect on September 29 in London, with an amended Office of Financial Sanctions Implementation licence covering related financial activities to be published and take effect on the same date.