Likud Party Chairman Benjamin Netanyahu introduced a bill yesterday to prevent official Israeli institutions and companies from investing in firms that conduct business with Iran.

Netanyahu said the bill was intended to increase economic pressure on Iran. He said Israel must first take economic steps against Iran before demanding that the international community follow suit and impose a boycott on the country.

The bill, which was co-signed by representatives of Kadima, Labor, Likud and Yisrael Beiteinu, will prevent official institutions from investing in companies with Iranian business ties.

Finance Minister Abraham Hirchson be charged with the task of implementing the law, and will formulate regulations to block official institutions from investing in tradable and non-tradable securities belonging to such companies.