Britain has set up a new unit to monitor and enforce the oil price cap with potential fines of more than £1m for breaches when the scheme starts on 5 December.

The unit, which will sit within the UK Treasury’s sanctions enforcement body, will work with the shipping industry to ensure it is ready for the cap and carry out ongoing monitoring, said officials.

The body could potentially play a key role in the enforcement of the cap as London is a key broking, legal and maritime finance centre.