US approves legislated sanctions against Iran

• Source: Global Times
• [12:36 November 04 2009]
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A panel of the US House of Representatives Wednesday passed legislation that paves way for stepping up sanctions against Iran for its pursuit of nuclear capability.

The legislation approved by the House Foreign Affairs Committee would give the Obama administration power to impose sanctions on companies that provide Iran with gasoline or assist its imports by providing ships or shipping services, as well as companies that insure or finance such activities.
The bill, directed at firms heavily invested in Iran's energy sector or that help to boost Tehran's domestic production of oil, would make it more difficult for Iran to develop nuclear weapons.

Despite its rich oil reserves, Iran imports 40 percent of its gasoline because of the lack of domestic refining capacity. Iranian government subsidies keep oil prices lower than in other countries.