The British government has instructed financial institutions to cease doing business with two Iranian companies immediately. Treasury Minister Sarah McCarthy-Fry fears the Mellat Bank and the Islamic Republic of Iran Shipping Lines are both involved in the development of nuclear weapons.

A spokesman for Iranian President Mahmoud Ahmadinejad said Iran would not be damaged by the move, which showed Great Britain to be far from the realities of the world. Iran is due hold more talks on its nuclear ambitions with representatives of the international community in a week's time.

photos: Iran Shipping Lines vessel (flickr / sludgegulper) and Mahmoud Ahmadinejad (Wikipedia)