Ihe US House of Representatives called Thursday on President Barack Obama to report by January'31 the progress of his diplomatic outreach with Iran over its controversial nuclear drive.

In a provision of the 2010 defence budget bill, lawmakers said they required Obama "no later than January 31, 2010, to deliver a report to Congress on US engagement" with Tehran.

The legislation also demanded that sanctions be levied against Iran if the Islamic republic does not "accept the offer of (he United States to engage in diplomatic talks" and also if it fails "to suspend all enrichment-related and reprocessing activities" related to its nuclear ambitions. The bill, which still needs Senate approval, also requires Secretary' of Defence Robert Gates "to submit an annual report to Congress on the current and future military-strategy of the Islamic Republic of Iran."

Democratic Senator Christopher Dodd said on Tuesday he was strongly in favour of ratcheting up the pressure on Tehran, and revealed he was crafting "comprehensive sanctions legislation" to be unveiled later this month.

"I am committed to ensuring that this Congress equips President Obama with all the tools he needs to confront the threats posed by Iran." he said.

The draft Senate bill aims to impose new sanctions on companies exporting refined petroleum products to Tehran, and other measures.