LONDON // Britain yesterday ordered the immediate closure of the Iranian Embassy in London in retaliation for mobs storming the UK's two sprawling diplomatic compounds in Tehran on Tuesday.
William Hague, the foreign secretary, announced the move shortly after all British diplomats in Tehran were flown to Dubai for safety.
He told Parliament that Britain's embassy in Tehran would be closed indefinitely.
"If any country makes it impossible for us to operate on their soil, they cannot expect to have a functioning embassy here," Mr Hague said.
Even so, as already tense relations with Iran plummeted, Mr Hague said Britain was not severing relations with Tehran entirely.
Tuesday's attacks, the worst on a foreign mission in Iran since the US Embassy was seized in the turbulent wake of the 1979 Islamic revolution, provoked widespread international condemnation, deepened Iran's isolation and highlighted a growing rift within Tehran's ruling hardliners.
Mr Hague said it was "fanciful" to believe the attacks did not take place without the support of Iran's regime.
Earlier, David Cameron, the prime minister, said: "The Iranian government must recognise that there will be serious consequences for failing to protect our staff. We will consider what these measures should be in coming days."
Iran will come under more pressure today when European Union foreign ministers meeting in Brussels will discuss additional economic sanctions against Tehran over its nuclear programme. France has been pressing for an EU ban on Iranian oil imports. EU members will weigh the desire to punish Iran with the need to keep channels open to defuse the nuclear row.
In solidarity with Britain, the ministers are also likely to discuss retaliatory measures against Iran for Tuesday's attacks and Tehran's decision a day earlier to expel the British ambassador, Dominick Chilcott.
Norway yesterday temporarily closed its embassy in Tehran for security reasons, but said it would not evacuate staff. And Italy said last night it was considering closing its embassy.
Iranian riot police had stood idly by while crowds, led by plain-clothed members of the volunteer Basij militia chanting "Death to England", broke into the high-walled British compounds.
They ransacked offices, burnt Union flags, torched at least one embassy vehicle and ripped up portraits of Queen Elizabeth II. No embassy staff was hurt, although six had to take refuge in a secure room for several hours.
Riot police firing tear gas flushed out the triumphant protesters later on Tuesday, only after widespread damage to property had been inflicted. Mr Hague said Iran should be "ashamed", adding that Britain is seeking compensation for the damage. Iranian state television crews were on hand to record the chaotic scenes.
Britain infuriated Tehran last week by sanctioning Iran's central bank after a report by the UN's nuclear watchdog strongly suggested that the Islamic republic had conducted research into nuclear weapons. Tehran insists its nuclear programme is designed solely to generate electricity.
The storming of the British compounds appeared to reflect a prolonged and bitter power struggle between Iran's ruling hardliners that pits President Mahmoud Ahmadinejad's government against his opponents in the parliament and judiciary who are loyal to the supreme leader, Ayatollah Ali Khamenei.
Iran's foreign ministry issued a rare expression of regret on Tuesday night that contrasted sharply with a defiant statement yesterday by the powerful parliamentary speaker, Ali Larijani. Maintaining the protests were spontaneous, he argued that Britain was to blame for the high emotions that underpinned the violent scenes.
"This anger is an outcome of decades of domineering moves by the British in Iran," he told a session of parliament.
Some Iranian newspapers also heralded the seizure of what they called the "fox's den", alluding to Britain's nickname in Iran as the "colonial old fox".
The Iranian government, however, blamed the incident on the "unacceptable behaviour by a small number of protesters" and said several had been arrested and charged.
Mr Ahmadinejad appears keen to maintain working relations with EU countries to stave off further sanctions over Iran's nuclear programme. But his hardline opponents seem to relish a crisis, hoping it will embarrass him and unite Iranians behind the regime.
Hostility to Britain, which has been at the forefront in pressing for more punitive sanctions over Iran's nuclear programme, has resonance among Iranians, which the regime often taps when things are going badly at home.
Mistrust is rooted in British imperial meddling in Iran during the 19th and 20th centuries. The defining moment was in 1953 when Britain joined with the US in a coup that overthrew Iran's elected prime minister, Mohammad Mossadegh, and reinstalled the unpopular Shah. Mossadegh's sin in British eyes was to have nationalised the British-owned Anglo-Iranian oil company.
The last time the British Embassy was ransacked was in November 1978, just months before Iran's Islamic revolution, when a crowd accused Britain of supporting the Shah. In 1986, Revolutionary Guards members beat up the British charge d'affaires and in 2007 Iran detained 15 British sailors and marines in disputed waters along the Iraqi border.
Protesters on Tuesday who demanded the closure of the British Embassy branded it a "den of spies", echoing the accusation made against the US Embassy in 1979 when it was stormed by militant students who held 52 American diplomats hostage for 444 days.
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Bio:
Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
SPECS
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
England squads for Test and T20 series against New Zealand
Test squad: Joe Root (capt), Jofra Archer, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Jack Leach, Saqib Mahmood, Matthew Parkinson, Ollie Pope, Dominic Sibley, Ben Stokes, Chris Woakes
T20 squad: Eoin Morgan (capt), Jonny Bairstow, Tom Banton, Sam Billings, Pat Brown, Sam Curran, Tom Curran, Joe Denly, Lewis Gregory, Chris Jordan, Saqib Mahmood, Dawid Malan, Matt Parkinson, Adil Rashid, James Vince
Sholto Byrnes on Myanmar politics
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
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