WASHINGTON, Oct 28 (Reuters) - A U.S. House of Representatives committee approved legislation on Wednesday that would sanction companies that sell gasoline to Iran, offering President Barack Obama a new tool to wield against Tehran if it remains defiant over its nuclear program.
The bill by Democratic Representative Howard Berman aims to cut Iran's gasoline supplies if negotiations fail to resolve the standoff over Iran's nuclear program, which Washington fears is aimed at making a bomb but Tehran says is to generate electricity. It was approved on a voice vote by the House Foreign Affairs Committee.
But it still must be approved by other committees and the full Congress before becoming law, and even if it does, it is not clear it would be enforced. The Obama administration says it is committed to working with global partners to pressure Iran, so it could be reluctant to take unilateral steps.
Iran has some of the world's biggest oil reserves, but it imports 40 percent of its gasoline because of a lack of refining capacity. Government subsidies also help keep gasoline in Iran much cheaper than in other countries.
Berman's bill would expand a 1996 Iran sanctions law to effectively bar companies that sell refined petroleum products, including gasoline, to Iran from doing business in the United States.
(Editing by Philip Barbara)