British ministers are making plans aimed at targeting Iran with sanctions in the aftermath of the Iranian seizure of a British-flagged oil tanker in the Gulf, the Daily Telegraph newspaper reported.

British Foreign Secretary Jeremy Hunt is expected to announce on Sunday diplomatic and economic measures, including potential asset freezes, as a response to the incident, according to the report.

Britain could push for United Nations and European Union sanctions to be reimposed on Iran after they had been lifted in 2016 following a deal on Iran's nuclear program, the Telegraph reported.

(Reporting by Kanishka Singh in Bengaluru; Editing by Will Dunham) ((Kanishka.Singh@thomsonreuters.com; +91 80 6749 0021;))