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UK and US union 'to join forces' ... US has imposed new financial sanctions on Iranian individuals and companies suspected of involvement in the country's nuclear programme.

A senior defence ministry scientist and several companies thought to be linked to Iran's arms industry were among those placed on the restricted list.

The move will ban US companies from trading with those on the list, who will also have US assets frozen.

It came as G8 leaders called for Iran to halt uranium enrichment work.

Western leaders have been attempting to convince Tehran to stop enriching uranium, which it has continued despite the imposition of sanctions by the UN and the European Union.

Iran denies Western assertions that it is developing nuclear weapons and insists its nuclear programme is intended for peaceful purposes.

Correspondents say the latest sanctions move is intended to increase the pressure on Tehran to comply with the calls to end enrichment.

(BBC)

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