BBC News with Marion Marshall
Britain has ordered the closure of the Iranian embassy in London and said staff must leave within 48 hours. The British Foreign Secretary William Hague announced the measures a day after protesters stormed the British embassy and diplomatic compounds in Iran. An Iranian government spokesman described the British response as "hasty" and warned that Iran would take further appropriate action. James Robbins reports.
Britain's foreign secretary was blunt. He told members of parliament that the Iranian demonstrators had systematically
vandalised
and looted the homes of British embassy staff in Tehran. Mr Hague said they stole personal possessions and set fire to the main embassy office building. The foreign secretary was clear this was the work of a student
militia
controlled by elements of what he called the Iranian regime. William Hague said no difficulty in relations between the two countries could excuse Iran's failure to protect diplomatic staff under the terms of the Vienna Convention.
Other European countries have reacted to the storming of the British embassy. France and Germany have recalled their ambassadors for consultations. A French foreign ministry official said Iran had violated international law.
Stock markets around the world have
rallied
after the central banks of six leading economies launched coordinated action to improve the availability of credit. American stocks jumped 3% in early trading following similar rises on European markets. Our business editor Robert Peston reports.