UK Enacts Broad New Sectoral Sanctions on Iran
New regulations effective September 29, 2026, introduce extensive restrictions on finance, energy, shipping, and software, aligning the UK's Iran sanctions regime more closely with the EU's.
The UK government has introduced The Iran (Sanctions) (Amendment) Regulations 2026, which come into force on September 29, 2026, significantly expanding its sectoral sanctions against Iran. The move follows the 2025 "snapback" of JCPOA sanctions and brings the UK's regime into closer alignment with broader measures previously adopted by the EU. These new restrictions impact key industries, including finance, energy, shipping, and technology, by imposing prohibitions on investments in Iranian oil and gas, restricting UK-Iran banking relationships, and banning insurance services for persons connected with Iran. The rules also establish wide-ranging trade controls, blocking exports of energy-sector equipment and certain enterprise software, and barring imports of Iranian oil, gas, and petrochemicals. Companies with UK operations must urgently assess their trade and financial activities for exposure. A wind-down provision for some pre-existing software contracts is available until March 7, 2027, but it requires notification to the authorities. Non-compliance carries potential criminal and civil penalties.