Iran's President Mahmoud Ahmadinejad (L) welcomes International Atomic Energy Agency (IAEA) Director General Mohamed ElBaradei during an official meeting in Tehran October 4, 2009. [Agencies]

WASHINGTON: The US House of Representatives on Wednesday passed a sanction bill against Iran, permitting US state and local governments to divest investments from companies involved in Iran's energy activities.

Under the bill, which was passed by a 414-6 vote, the state and local governments would obtain legal authorities to divest investments from those companies investing more than 20 million dollars in Iran's petroleum or natural gas operations.

Similar legislation has been sponsored in the Senate.

The move by US Congress came after the Iranian government told the UN nuclear watchdog that it has a second uranium enrichment plant near Qom, 160 kilometers south of Tehran. The plant is believed to have facility for 3,000 centrifuges.

The United States, its European allies and Israel claim that Iran's nuclear program is aimed at developing nuclear weapons, while the UN Security Council also requires Iran to suspend its uranium enrichment activity.

However, Iran insists that its nuclear plan is only for peaceful purposes, and continues its uranium enrichment activity despite pressure from the western countries and relevant resolutions and sanctions of the United Nations.

The Obama administration said on Tuesday that the option of economic sanctions remains on the negotiating table with Iran, urging Tehran to address the international concerns on its nuclear issue.

"We think there are still opportunities to apply pressure, if Iran is unwilling to address the concerns the United States and the other members of the international community have about its nuclear aspirations," State Department spokesman Philip Crowley told a Tuesday press briefing.

"Our strategy involves a two-track approach. That includes engagement, as well as pressure. We have a suite of sanctions that are in place, so we continue to work to see how to make them more effective," said the spokesman.