The UK has appointed an ambassador to Iran for the first time since 2011, restoring diplomatic relations.
Nicholas Hopton was appointed UK charge d’ affairs in Tehran and his role is upgraded to ambassador.
The decision comes nearly five years after Iranians invaded the British Embassy and one year after the British Embassy reopened in Tehran, which reflects gradual thawing of relations in the wake of the Iranian nuclear agreement.
Meanwhile Hamid Baeidinejad, has been appointed the Iranian ambassador to the UK.
The move came as British Airways restored direct flights to Tehran six days a week and British banks continued to increase operations.
Iran downgraded its relations with the UK in November 2011 when stronger international sanctions were imposed.