White House Criticizes Conoco’s Deal With Iran : Trade: A Senate committee leader pledges hearings on U.S.-Iran commercial transactions.

The Clinton Administration on Tuesday criticized Conoco’s $1-billion oil and gas contract with Iran, while the chairman of the Senate Banking, Housing and Urban Affairs Committee promised hearings on the question of banning commercial transactions between Iran and the United States.

White House Press Secretary Mike McCurry reacted to news that a Dutch affiliate of the Houston-based oil concern will develop two Iranian oil fields. He said such a deal is not illegal but that “as a general thrust of our policy, which is designed to bring pressure to bear on Iran and get them to behave in the world community, this is not a helpful development.”

State Department spokeswoman Christine Shelly added, “We believe that U.S. oil companies are well aware of the longstanding U.S. policy toward Iran, which is to maximize pressure . . . both economically and politically to try to change their behavior.”

Shelly said the Conoco deal also weakens U.S. standing among allies it has been trying to dissuade from dealing with Iran. “I think, probably, the announcement of this by itself may make some of those efforts more difficult,” she said.

A company spokesman said Conoco has kept U.S. officials aware of the transaction as it developed. He said that if U.S. oil companies don’t do business with the Iranians, Europeans will be glad to take their place.

Sen. Alfonse M. D’Amato (R-N.Y.), describing himself as “deeply distressed,” said the Banking committee, which he chairs, plans hearings soon on legislation to tighten the trade embargo. A bill he has introduced would bar all commercial and financial transactions between U.S. firms and Iran, except for humanitarian aid.

D’Amato said the current embargo “is a myth, because you have oil companies selling . . . and we’re importing about $3.5 (billion) to $4 billion worth of Iranian oil.”

The U.S. position has always been that there is no benefit in pursuing unilateral trade prohibitions on oil deals that would have no meaningful effect on Iran: If U.S. companies withdrew, other European or Asian dealers would quickly take their place.

Since the 1979-81 hostage period, during which 52 Americans were held captive 444 days, the United States has maintained full sanctions or tight restrictions on dealing with Tehran. Yet in recent years, the United States has nonetheless become one of Iran’s major trading partners.

The United States exported goods to Iran worth $749 million in 1992, $616 million in 1993 and $328 million in 1994, according to the Commerce Department. Goods sent to Iran range from foodstuffs to machinery to auto parts--generally items easily obtainable from non-American sources.

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Times staff writer Robin Wright contributed to this report.