Iran's Majlis (parliament) passed a bill on Sunday to reduce the country's diplomatic ties with Britain.

The bill requires Iran's Foreign Ministry to reduce diplomatic ties with Britain from ambassador level to the level of charge d' affaires within two weeks, calling on the government of President Mahmoud Ahmadinejad to reduce the economic and trade relations with Britain to the lowest level.

In case the British government stops its "hostile" policies towards the Islamic Republic, the government can upgrade its ties with Britain, according to the Iranian parliament.

On Wednesday, Iran's Majlis approved the urgency of a proposal to consider the reduction of ties with Britain.

The Iranian lawmakers' motion to reduce the ties or to sever diplomatic relations with Britain came due to British government's political and economic pressures against the country, including the recent move to cease business relationships and transactions with the Central Bank of Iran.

Last Monday, Britain severed all links with Iranian banks as part of the country's new financial sanctions against Tehran in the wake of a report by the International Atomic Energy Agency that expressed concern over Tehran's controversial nuclear program.

From 1500 GMT last Monday, all British credit and financial institutions are required to cease business relationships and transactions with all Iranian banks, including the Central Bank of Iran, and their branches and subsidiaries.

According to a statement from the British Treasury, Iranian banks played a crucial role in providing financial services to individuals and entities within Iran's nuclear and ballistic missile programs.

Iran insists that its nuclear activities are "peaceful" and "civilian."

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