Washington: The United States has warned India and other countries like China, Pakistan and Malaysia as well as foreign oil companies of penalties if they pursue energy deals with Iran, a report said here.

The US Government has been quietly warning foreign energy companies, including Europe's Shell and Repsol and Malaysia's SKS, as well as the governments of China, India, Pakistan and Malaysia, that penalties are possible if they pursue energy deals with Iran, the New York Times said in a report today (Mar 22, 2007).

According to the daily, the Bush administration officials have acknowledged that one factor behind these warnings is that the Democrats-controlled Congress appears to be moving quickly to pass a law that would make sanctions mandatory out of concern about Iran's suspected nuclear arms programme and support for terrorism.

"What we are trying to do is create multiple points of pressure on Iran in both the private and public sector," the paper quoted the Under Secretary of State for Political Affairs R Nicholas Burns as saying.

"These companies also need to know that the attitude of Congress on their activities in Iran is hardening," Burns told NYT.

Penalties on foreign firm assisting Iran in producing oil and gas are part of the Bush administration's efforts to apply economic and political pressure on Iran over its nuclear programme, although it has never before used such a potentially potent tool in its arsenal, the paper said.

As a result, a number of projects planned for Iran could be vulnerable -- including a 10 billion dollar project by Royal Dutch Shell and Spain's Repsol YPF to develop a natural gas field and a 20 billion dollar venture by Malaysian SKS Ventures to produce natural gas in the country.