| Link(s): | Written Ministerial Statement: Iran Sanctions, 8 September 2026 – GOV.UK The Iran (Sanctions) (Amendment) Regulations 2026 |
Context
On 8 September the FCDO announced that the Iran (Sanctions) (Amendment) Regulations 2026 (The Iran (Sanctions) (Amendment) Regulations 2026) was laid in Parliament. The legislation, which comes into force on 29 September, imposes (previously announced) further sectoral sanctions on Iran, broadly corresponding to measures lifted by the UK and partners as part of the Joint Comprehensive Plan of Action.
Key points to note and next actions
- New legislation includes financial measures to reduce the ability of the Government of Iran to access the UK financial systems.
- It will also bring forward trade prohibitions targeting significant industries advancing Iran’s nuclear escalation, including the energy, metals, gold, and software sectors, and related activities such as shipping, insurance and banking.
- FCDO is also expanding its powers to target Iranian vessels which enable and facilitate Iran’s nuclear programme and malign activity.
Like all sanctions measures the legislation includes carefully designed mitigations. This will include general licensing to enable the continued operation of the Shah Deniz gas field in Azerbaijan, which provides critical energy supplies to the UK’s European partners. It is a continuation of long-standing policy that aligns the UK with the EU and US, who have similar carveouts for activities related to Shah Deniz.
Key resources relating to the new legislation:
- Written Ministerial Statement: Iran Sanctions, 8 September 2026 – GOV.UK
- OTSI General Licence Update – Subject to parliamentary approval, certain trade activities related to Shah Deniz will be permitted via a new OTSI general licence. The prospective licence can be found on GOV.UK https://www.gov.uk/government/publications/general-trade-licence-services-necessary-for-the-continu…, and will come into force on 29 September.
- OFSI General Licence Updates – OFSI will also update an existing licence https://www.gov.uk/government/publications/ofsi-general-licence-int20257363752 permitting certain financial activities related to Shah Deniz, which will both be published and enter into force publishing on 29 September.
- Statutory guidance for the Iran 2019 regulations and the Iran 2023 regulations.