Britain wants to work with Iran on trade and investment

Britain said on Sunday that it wanted to work with Iran's central bank to make it easier for UK banks to finance trade and investment in the country after a thaw in diplomatic relations.

"I think it would be very helpful and very positive if we could begin a dialogue about how we can create conditions which would allow British banks and British financial institutions to engage in the financing of trade and investment in Iran," Foreign Secretary Philip Hammond told Valiollah Seif, governor of the Central Bank of Iran, at a meeting in Tehran.

Hammond said banks, mindful of penalties imposed in the past by US authorities, were cautious to ensure that they were fully compliant when they return to Iran.