U.S. lawmakers are moving forward with tough new sanctions against Iran, aimed at further reducing the nation's oil revenues to undercut its nuclear program.

Negotiators from the U.S. Senate and House of Representatives reached agreement on the compromise legislation late Monday.

The bill would target Iran's energy and shipping sectors. It would penalize anyone who works in Iran's petroleum, petrochemical or natural gas sector, or provides goods, services or infrastructure to the nation's oil and gas industry.

Companies that insure Iran's oil sector or its state-run shipping line would also be sanctioned, as well as those that provide oil tankers to Iran. The bill also seeks to crack down on those helping Iran evade sanctions by reflagging ships.

Lawmakers hope to vote on the bill this week, before their month-long August recess.

It would then go to President Barack Obama for signing.

Iran says its nuclear program is for peaceful purposes, but the U.S. and its allies suspect the country is trying to develop nuclear weapons.