State and local governments that want to divest themselves of investments in companies which do business in Iran will be allowed to do so with a proposed law that the US House of Representatives approved Wednesday 14 October. No new sanctions on Iran are envisaged, but companies that invest more than $20 million in Iran’s energy sector can be targeted and their shares sold by state and municipal investment agencies. The federal government has the exclusive right to conduct foreign policy, but would waive its right in this case, if the Senate passes the law as well.

The move comes as the US is trying to line up international support for a united response to Iran’s continuing nuclear program. The five permanent members of the UN Security Council cannot agree on sanctions on Iran to force it to comply with international rules concerning nuclear research programmes. AP, The Hill

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