Iran has ordered its scientists to come up with a nuclear propulsion system for ships.

The move is a response to the potential extension of US financial sanctions for another 10 years, the Financial Times reported.

Iran believes this runs contrary to last year’s nuclear deal between it and the US and others.

Iranian president Hassan Rouhani wants the atomic energy organisation to design and build “a nuclear propulsion system to be used in marine transportation with the co-operation of scientific and research centres”, the report said.

It is not yet clear whether the technology would apply to ships or submarines or both.