Britain will pull all of its diplomatic staff out of Iran, Reuters reported on Wednesday.
Protesters stormed and ransacked the country’s embassy in central Tehran on Tuesday, as well as a residential compound in the north of the city.
They chanted ‘Death to Britain’, burnt the Union Jack and destroyed portraits of the Queen.
The demonstrations were in response to the UK government’s recent ban on banks doing business with the Islamic Republic.
Those sanctions form part of a move by the West to isolate Iran amid allegations that it is trying to build an atomic bomb.
The UK suspended all diplomatic relations with Tehran after the Islamic Revolution of 1979. They were restored 11 years later.