Manouchehr Mottaki was dismissed by the President Mahmoud Ahmadinejad with no reason given. It is believed that it was a struggle of the conservative faction in power in the Iranian regime.
He is also regarded as too ready to engage in Western countries, in spite of his own abrasive manner.
Britain may be the first to feel the greatest share of change, as President Mahmoud Ahmadinejad takes more personal control of Foreign Affairs.
MEPs ask already the British Embassy in Tehran could be closed. Ambassador in Tehran, Simon Gass, was summoned to the Ministry of Foreign Affairs for a dressing down on "inhumane" "peaceful demonstrators student" police in London last week.
Mr Mottaki has undergone a series of indignities in recent weeks. WikiLeaks cable revealed that under a polished veneer relations Iran with its Arab neighbours were so poor that many asked United States take military action against private.
Mr. Ahmadinejad said that Mr. Mottaki would be replaced for the moment by Ali Akbar Salehi, Vice President and head of Iran's nuclear program, a sign of the nuclear issue how central is the Iran foreign policy.
Mr Mottaki had already been rejected by the discussions and had publicly supported Mr. Ahmadinejad.
The subpoena to M. Gass was a direct retaliation for a blog, he wrote last week criticize the Iran human rights record and in particular his detention Nasrin Sotoudeh human rights lawyer.
Monday, hundreds of demonstrators gathered outside of the Embassy. "Protest by some Basiji students", M. Gass wrote in a tweet. "Burnt the Union Jack, but at least got the right way up to this moment."
An MP has said the protesters Embassy was a "nest of spies", a term previously used before United States Embassy it was occupied by students after the 1979 revolution.
Another Member, Kazem Jalali, spokesman of the Parliamentary Committee for Foreign Affairs, says that Britain should pay the price "the Iranian nation faced".
"Iran loses nothing downgrade relations with Britain", he said.
He said students were killed by police in London.
"Gass wrote Iran, human rights violation by ignoring the murder of students in the United Kingdom in the recent protests", he said.
The Foreign Office yesterday evening jumped in defense of Mr. Gass. "The important work done by the United Kingdom Embassy in Tehran has the full support of this Government," said Alistair Burt, Minister for Foreign Affairs. "It is only by means of an open dialogue and franc that we can solve the problems we face, inter alia, the international community seeks to widespread concern Iran human rights abuse address.
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