Under the bill, which was passed by an 80-17 vote, foreign company that sells more than one million dollars' worth of fuel to Iran would not be able to bid for contracts offered by the U.S. government.
It also covers companies that provide Iranian regime with the means to improve its own refining capacity or its ability to import refined petroleum products.
The House of Representatives had also passed a bill earlier on Wednesday, which gives the US state and local governments the power to divest investments from companies investing more than 20 million dollars in Iran's petroleum or natural gas operations.