Iran 'punishes' Britain...

We're going to be hearing a lot about Iran in the next little while.

Iran has imposed an undeclared embargo on British imports as it steps up accusations that Britain is behind a series of bombings near the southern border with Iraq.

The moves are further evidence of a crisis in relations between Teheran and London, highlighted by the British-led effort to curb Iran's nuclear programme and British accusations that Teheran is giving Iraqi insurgents bomb-making technology that has killed several British soldiers this year.

As hardline Iranian newspapers demanded the closure of the British embassy in Teheran, the government appeared to be acting on its threats to use economic ties to favour its allies and punish its foes.

"Some companies have reported difficulties even though the Iranian ministry of commerce says there are no new restraints," said a Foreign Office spokesman. "We are looking into this and we will be discussing the situation with British companies and the Iranian authorities."

In private, however, British officials are certain a ban is in force, with British goods held up at customs and the Iranian authorities declining applications for letters of credit for British imports.

A similar policy has affected goods from South Korea, which is on the board of the International Atomic Energy Agency (IAEA).