The United Nations has issued an urgent demand for Iran to release two British nationals held in Tehran, a development that coincides with the exposure of a £300bn sanctions evasion mechanism operating through Dubai’s financial district. The Foreign Office confirmed on Tuesday that the individuals, whose identities remain undisclosed for diplomatic reasons, were detained in Tehran on espionage charges widely dismissed as pretextual. The UN Security Council convened an emergency session after a report from the International Atomic Energy Agency revealed that Iranian-linked entities have been exploiting a gap in sanctions oversight to move capital through UAE-based shell companies.
This mechanism, which involves the transfer of oil revenue via third-party traders in Dubai, has allowed Iran to circumvent restrictions imposed in 2018 after the US withdrawal from the Joint Comprehensive Plan of Action. The British nationals’ detention is believed to be directly linked to recent Anglo-American efforts to close this loophole, including the freezing of accounts held by two Dubai-based trading firms. The FCDO has advised against all but essential travel to Iran, while the UN special envoy has called for immediate consular access.
The exposed loophole, valued at an estimated £300bn in cumulative transactions since 2019, has prompted calls for a comprehensive review of sanctions enforcement mechanisms in the Gulf.
