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After failing to halt Iran's nuclear advances with harsh economic sanctions, a group of U.S. lawmakers and analysts is proposing a more drastic remedy: cutting off Iran entirely from world oil markets, Washington Post reported.

Advocates of the measure say increases in oil and gas production in the Middle East and North America have made it economically feasible to organize the first truly global boycott of Iranian crude.

Such an effort, if successful, would sideline the world's fourth-biggest oil producer and could force Iran to change its nuclear policies.

Some economists and Obama administration officials have criticized the proposal, variations of which are circulating on Capitol Hill, saying such a measure could disrupt oil markets, alienate U.S. allies and drive up energy prices.

White House officials say they are exploring alternatives for further reducing the petroleum sales that provide Iran with the bulk of its foreign-currency earnings.

At the same time, the administration and Congress are pushing for new financial measures to close loopholes that allow Iran to collect hard currency - particularly gold - for its oil and gas.

The U.S. and its Western allies suspect Iran of developing a nuclear weapon - something that Iran denies.

The Islamic Republic has on numerous occasions stated that it does not seek to develop nuclear weapons, using nuclear energy for medical researches instead.

"If we're talking about things that could really hurt the Iranian economy, at the top of the list is taking their oil off the market," said a senior Senate aide involved in discussions of a proposal to require all countries to stop buying oil from Iran or risk losing access to the U.S. banking system.

The aide, who spoke on the condition of anonymity to discuss internal Senate deliberations, described "strong interest, on a bipartisan level," in the plan.

Among those who have been looking at ways to dramatically lower Iran's oil exports are Sen. Robert Menendez (D-N.J.), chairman of the Foreign Relations Committee, and Sen. Mark Kirk (R-Ill.), a member of the Appropriations Committee and a leading Senate hawk on Iran sanctions.

Congressional aides from both parties say that as many as two Iran sanctions bills are expected to win approval before the summer recess.