US House Panel Passes Iran Refined Petroleum Sanctions Act

The U.S. House Foreign Affairs Committee Wednesday passed the Iran Refined Petroleum Sanctions Act, a bill targeting Tehran and the firms conducting energy business with the state.

The bill--part of a larger effort to halt Tehran's nuclear enrichment program--gives the Obama administration stronger powers to sanction companies that provide Iran with gasoline, diesel and other refined petroleum fuels. It passed by a voice vote, an indication the legislation has strong support in Congress.

Despite being one of the largest exporters of crude in the world, Iran imports a major portion of its gasoline needs due to a dearth of refining capacity.

Chairman Howard Berman, (D. Calif.), said the bill will "maximize the chances that Iran, the leading state sponsor of terrorism, will be prevented from acquiring the capacity to produce nuclear arms."

"That capacity would pose perhaps the most serious strategic threat to our nation," he said.

France's Total SA (TOT), India's Reliance Industries Ltd. (500325.BY), Swiss company Vitol Holding BV, and BP PLC (BP), are some of the largest suppliers of refined products to Iran.

The U.S. and intelligence agencies fear Iran is pursuing a nuclear weapons program, a concern exacerbated by the revelation of a new, secret enrichment facility and as Tehran tests its missile capabilities.

U.S. and international sanctions through the United Nations have so far failed to break the political stalemate with Iran.

The Senate Banking Committee is scheduled to vote on a nearly identical bill Thursday.

-By Ian Talley, Dow Jones Newswires, 202-862-9285; [e-mail]