DUBAI/MUSCAT - Oman has begun looking after Iranian affairs in Britain, a foreign ministry official said on Thursday, as part of what Tehran said was a diplomatic deal following the closure of both countries' embassies last year.

"We have been representing Iran in London on a small scale in the last one month," an official at Oman's Ministry of Foreign Affairs told Reuters. Representation could be upgraded in the future he added, declining to elaborate.

The arrangement indicates a slight thawing in Anglo-Iranian relations, after protesters ransacked the British diplomatic mission in Tehran last November.

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