The US House of Representatives has passed a bill to allow sanctions against Iran.

The Iran Sanctions Enabling Act passed by a huge majority vote of 414-6.

The act will allow the state and local governments to pull funding from companies that make more than $20 million by investing in Iran’s energy sector, including petrol, natural gas and nuclear power.

It will also protect any fund manager who divests from the companies from being sued by them.

The bill’s author and Republican representative Mark Kirk said: "This legislation gives a strong 'go signal' to state and local leaders around America to get out of Iran.”

He added: “"For diplomacy to succeed, we must provide our diplomats more tools for their diplomatic toolbox."