London Daily

Focus on the big picture.
Tuesday, Mar 03, 2026

Truss tells Iran she hopes UK will soon be able to repay £400m debt

Truss tells Iran she hopes UK will soon be able to repay £400m debt

Tehran is keen to see Britain do more to help with Afghan refugee crisis
Liz Truss has said she hopes Britain will soon be in a position to pay the £400m debt overdue to Iran, according to an Iranian account of the phone call between the foreign secretary and her Tehran counterpart, Hossein Amir-Abdollahian.

UK government officials have been exploring legal ways to pay Britain’s historical debt, although international economic sanctions on Iran have made it difficult.

The UK Foreign Office did not proactively brief reporters on the call, but when contacted for comment it confirmed that the conversation had happened on Monday, saying: “We continue to explore options as a matter of urgency to resolve this case.” It said the UK had always been committed to paying the debt.

With talks on the Iran nuclear deal reaching their decisive stage in Vienna, it is possible Truss wanted to stress the upside of both sides reaching a deal. The two countries insist that the £400m debt – dating back to the sale of tanks to the shah of Iran in the mid-1970s – has always been treated as independent of the Vienna talks and the fate of three British dual nationals held in Evin prison or, in the case of Nazanin Zaghari-Ratcliffe, denied the right to leave Iran.

The tone of the call, according to the Iranian account, appeared to have been warmer than for some time, with Iran eager to see the UK do more to help with the Afghan refugee crisis on its borders. According to Iran, Truss praised Tehran for housing as many as 2 million refugees. The foreign ministry said: “Amir-Abdollahian positively assessed the relations between the two countries.”

It may have been significant that the Irish foreign minister, Simon Coveney, was in Tehran on Monday. He has acted as a conciliator on political prisoner issues in the past.

In the UK parliament last month, Boris Johnson again blamed the threat of sanctions for the block on the payment.

The Vienna talks will mean many of sanctions could be lifted, but it has been argued that the UK has been responsible for its own sanctions laws since Brexit and so could pay the debt now if it is not tied up in a wider negotiation.
Newsletter

Related Articles

0:00
0:00
Close
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
×