The foreign minister says the latest development will help build more "confidence and trust" between the two nations, which have received a boost following the signing of the Iran nuclear deal.
While labeling the opening a "milestone," Hammond also paid attention to the investment opportunities that came with the recent thawing of relations between Tehran and the West.
"Reopening our embassies is a key step to improved bilateral relations. In the first instance, we will want to ensure that the nuclear agreement is a success, including by encouraging trade and investment once sanctions are lifted."
UK Foreign Minister Meets Head of Iran’s Central Bank
During a meeting with Valiollah Seif, the governor of the Central Bank of Iran, Hammond said that Britain wanted to work with the bank to make it easier for British financial institutions to finance trade and investment in the country.
Hammond added that while the discussions were positive, he was cautious to ensure that any moves to invest in Iran would be done within full compliance of sanctions and laws.
"There is a huge appetite both on the part of our commercial and industrial businesses to engage with the opportunity of Iran opening up and there is huge appetite on the part of our financial institutions to support that activity but of course it has to be done in the proper way," he said.
London Jostling Into Position
Commentators have noted that Hammond’s purpose of visiting Iran was part of plans to give British organizations the best opportunities to invest in the country once Western-imposed sanctions are eventually lifted.
Britain, along with other countries including the US and Germany have also re-ignited diplomatic ties with Iran following the signing of the nuclear deal.
Sunday’s opening of the British embassy in Iran was also matched by the reciprocal move of re-opening the Iranian embassy in London.
