Tehran has initiated talks to sell oil to Japanese companies, according to three Iranian and Western sources, as potential buyers seek a longer-term waiver from U.S. sanctions and assurances of safe shipping conditions in the Gulf.
The waiver, issued on June 22 as part of ongoing 60-day peace talks between Tehran and Washington, is set to expire on August 21.
Two Iranian sources stated that three Japanese buyers are examining the possibility of purchasing Iranian crude oil—marking what could be the first such imports since 2019. The sources requested anonymity due to the sensitivity of the matter.
Separately, a well-informed Western source noted that Japanese and Iranian officials have held preliminary discussions regarding potential oil sales.
An official at Japan’s Ministry of Economy, Trade and Industry (METI), which oversees fuel supply infrastructure, said they were unaware of any such moves.
Neither the Japanese Foreign Ministry nor the U.S. Treasury Department have responded to requests for comment.
Japan, South Korea, India, and several European nations halted their purchases of Iranian oil after U.S. sanctions were tightened following President Donald Trump’s withdrawal from the Iranian nuclear deal in 2018. Over the past few years, China has remained the primary buyer of Iranian oil.
Strait of Hormuz Risks
Another METI official told Reuters in June that any Japanese purchases of Iranian oil would be a commercial decision made by private companies. However, the official noted that it remains unclear whether such deals could move forward, given the long shipping durations and current existing contracts.
The official added that ensuring the safety of oil tanker journeys would remain a critical factor to consider.
A senior Iranian official explained that completing any deal would require the United States to extend the current waiver, considering the time frame needed to transport oil between Iran and Japan.
He clarified that the shipments would be loaded from Iran’s Kharg Island and transported via tankers operated by Japanese companies.
A senior official at the Iranian Oil Ministry told Reuters that the National Iranian Oil Company (NIOC) has informed its regular customers, including Japan, of its desire to see them resume purchases of Iranian oil if a peace agreement is reached and sanctions are lifted.
The Iranian Oil Ministry did not respond to a request for comment.
Transit through the Strait of Hormuz is still far from completely safe, and it remains unclear how the waterway will operate after a permanent peace agreement is reached between Tehran and Washington.
A container ship was attacked by Iranian forces in the Strait of Hormuz last week, while the Islamic Revolutionary Guard Corps (IRGC) asserted that all transits through the strait must first obtain its approval.
The United Nations agency specialized in maritime shipping estimates that there are around 80 floating mines in the central part of the strait.
A senior official at a major Japanese oil refining company said that securing insurance coverage would pose the biggest challenge for any oil shipments from the region.
Traders and analysts believe that the current temporary U.S. sanctions waiver is unlikely to incentivize Asian refiners, who hold adequate inventories, to place new purchase orders—thereby keeping independent Chinese refineries as the main buyers of Iranian oil.
Reuters
