The UK is introducing a package of measures expanding sanctions against Iran’s nuclear program and hostile activity while creating a framework to designate foreign organizations acting for hostile states. The Iran (Sanctions) (Amendment) Regulations 2026 amend the 2023 sanctions regulations and the 2019 nuclear sanctions regulations, broadly restoring restrictions lifted under the Joint Comprehensive Plan of Action (JCPOA). They tighten access to the UK financial system and fundraising, expand trade prohibitions covering energy, software, metals, gold, shipping, insurance and banking, restrict Iranian aircraft access, and strengthen powers to sanction ships supporting Iran’s nuclear program or other malign and destabilizing activity. Separately, the National Security (State Threats) Bill would criminalize financial, material or operational support for designated foreign organizations, with penalties of up to 14 years in prison; up to ten Iran-backed proxy groups could be designated during its first year. The measures follow the UK’s implementation of UN sanctions snapback on 1 October 2025 and the designation of 71 individuals and entities linked to Iran’s nuclear program. The government says Iran has accumulated more than 400kg of uranium enriched to 60%, remains in significant non-compliance with international safeguards obligations and poses a serious threat to international peace and security, while maintaining that diplomacy is the only long-term solution. The package includes general licences for the continued operation of Azerbaijan’s Shah Deniz gas field, consistent with European Union and United States carveouts. It builds on more than 550 UK designations since 2023, including networks linked to the Islamic Revolutionary Guard Corps, proposed Office of Financial Sanctions Implementation (OFSI) fines of up to £2 million, and a reported 35% rise in state-sponsored threats identified by MI5. The measures could increase compliance costs for financial institutions operating in or through the UK and affect energy markets because roughly one-fifth of global oil passes through the Strait of Hormuz.