U.S. House panel OKs Iranian fuel sanctions bill

By Susan Cornwell

WASHINGTON (Reuters) - A bill that would give the Obama administration power to impose sanctions on a broad array of companies involved in providing Iran with gasoline cleared a key congressional committee on Wednesday.

Separately, a senior U.S. official said the Obama administration was probing whether some 20 foreign companies may have violated a U.S. law that imposes sanctions on entities that invest more than $20 million in Iran's energy sector.

The official, Assistant Secretary of State Jeffrey Feltman, said the administration had already found that some of the purported deals announced by the Iranians did not exist.

The House of Representatives bill seeks to cut Iran's gasoline supplies if negotiations fail to resolve the standoff over Tehran's nuclear program, which Washington fears is aimed at making a bomb.

The goal is to put pressure Iran by raising pump prices and possibly cripple its economy. Critics say such a step could backfire by trampling on diplomatic efforts and angering U.S. trading partners and allies.

The bill, sponsored by Representative Howard Berman and passed by the House Foreign Affairs Committee, has 330 co-sponsors. But three other panels must approve it or waive their right to do so before the full House votes on it.

A similar measure is expected to be voted on in the Senate Banking Committee on Thursday. Both chambers must agree on the same legislation before it becomes law.

Even if does, it is not clear it would be enforced. The Obama administration says it is committed to working with global partners to put pressure on Iran, so it could be reluctant to take unilateral steps.