Treasury Minister Eddie Teare says he is unfazed by draconian new sanctions against the entire Iranian financial system.

At midday yesterday (Tuesday), firms in the Isle of Man were banned from having any dealings with any banks or financial institutions in Iran, following similar moves by the United Kingdom.

Mr Teare says the UK imposed the restrictions because it believes Tehran is using banks to fund its nuclear programme, and the Island needs to follow suit to avoid being used to circumvent the ban.

However, the effect will be very small because the Island doesn't do much business with the country: