Legislation that aims to force the Bush administration to sanction oil and gas companies doing business with Iran cleared a first hurdle on Tuesday, winning overwhelming approval from a congressional committee. The bill was approved 37 to 1 by the US House of Representatives International Relations Committee.
It also would eliminate some tax breaks for companies investing in Iran, decrease US contributions to the World Bank if the bank invests in Iran and bar a nuclear co-operation agreement with Russia if Moscow continues to assist Tehran's nuclear program.
"My legislation will increase exponentially the economic pressure on Iran and empower our diplomatic efforts by strengthening the Iran Sanctions Act," said Rep. Tom Lantos, the committee chairman.
"It will put an end to the administration's ability to waive sanctions against foreign companies which invest in Iran's energy industry," the California Democrat said.
Iran is defying UN Security Council demands to halt uranium enrichment. The United States says Tehran's nuclear program is aimed at building bombs while Tehran says is designed only to produce electricity.
The independent American Enterprise Institute said in a recent study that companies and government agencies in three dozen countries had struck more than $153 billion in deals with Iran since 2000. Analysts said the investment could offer important leverage to persuade Tehran to abandon its nuclear program.
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