The European Union has agreed to impose fresh sanctions on 180 Iranian officials and firms over Tehran's controversial nuclear programme.

Ministers meeting in Brussels also agreed to work on other measures that could target Iran's energy sector.

The sanctions follow a UN report linking Iran to the development of a nuclear weapon. Iran denies the claims.

The EU measures also come two days after hundreds of Iranian protesters stormed the UK embassy in Tehran.

Britain announced on Wednesday it was expelling all Iranian diplomats from London, after pulling its own out of Tehran.

A spokesman for EU foreign policy chief Catherine Ashton stated that the new sanctions would target 39 people and 141 companies and would include the freezing of assets and travel bans, BBC News reported.