House panel endorses bill expanding Iran sanctions

WASHINGTON (Reuters) - A House committee on Thursday endorsed legislation that would expand U.S. sanctions on Iran to include overseas financial companies that facilitate investment in the Iranian energy industry.

The measure approved by the House Foreign Affairs Committee would add banks, insurers and some other financial institutions to the list of entities that would be subject to sanctions if they aid investment in Iran's energy sector.

The legislation, sponsored by Republican Ileana Ros-Lehtinen of Florida and Democrat Brad Sherman of California, would modify a 1996 U.S. law designed to punish companies that invest more than $20 million in Iran's energy sector in a given year.

It also would broaden the definition of Iran's energy sector to include petroleum byproducts and natural gas, and make U.S. companies responsible for any violations committed by their overseas subsidiaries.