Iran Begins Oil Sale Talks With Japan Under U.S. Sanctions Waiver Amid Shipping Risks

Iran has opened preliminary discussions with Japanese companies about resuming crude oil exports under a temporary U.S. sanctions waiver, although potential buyers are seeking a longer exemption and stronger assurances over shipping safety before committing to purchases.

The 60-day waiver, issued on June 22 as part of ongoing peace negotiations between Tehran and Washington, remains valid until August 21. According to Iranian and Western sources, three Japanese buyers are exploring the possibility of importing Iranian crude for the first time since 2019, when tighter U.S. sanctions effectively halted Japan’s purchases.

A Western industry source confirmed that Japanese and Iranian officials are holding early-stage talks regarding potential oil shipments. However, Japan’s Ministry of Economy, Trade and Industry (METI) said it was not aware of any formal negotiations, while Japan’s foreign ministry and the U.S. Treasury have yet to comment on the reports.

Japan, South Korea, India, and several European countries stopped importing Iranian oil after U.S. President Donald Trump withdrew from the Iran nuclear agreement in 2018 and reinstated sanctions. Since then, China has remained Iran’s primary oil customer.

Industry officials say any agreement will depend on more than regulatory approval. A METI official previously noted that shipping schedules, existing supply contracts, and maritime security concerns could complicate any deal. A senior Iranian official also said the current waiver would likely need to be extended because tanker voyages between Iran and Japan take longer than the exemption period allows.

According to Iranian officials, crude shipments would be loaded at Kharg Island using Japanese-operated tankers. Iran’s National Iranian Oil Company (NIOC) has reportedly contacted former customers, including Japan, expressing its intention to resume exports if a lasting peace agreement results in broader sanctions relief.

Security in the Strait of Hormuz remains a major concern for prospective buyers. The vital shipping lane continues to face heightened risks following recent regional tensions. Last week, an Iranian attack on a container vessel in the strait and statements from Iran’s Revolutionary Guards requiring vessel clearances have raised fresh concerns over maritime safety.

The United Nations’ shipping agency has also estimated that around 80 floating mines remain in the central part of the Strait of Hormuz, adding another layer of risk for commercial shipping operations.

Insurance coverage is expected to be one of the biggest obstacles. A senior executive at a major Japanese oil refiner said obtaining affordable marine insurance for voyages through the Strait of Hormuz would be extremely challenging under current conditions.

Despite the diplomatic opening, analysts and trade sources believe the temporary U.S. sanctions waiver is unlikely to trigger significant purchases from major Asian refiners, many of which already have sufficient crude inventories. As a result, independent Chinese refiners are expected to remain the primary buyers of Iranian oil unless the waiver is extended or broader sanctions are lifted.

The outcome of ongoing U.S.-Iran peace talks and future decisions on sanctions will likely determine whether Japan and other traditional buyers can safely and legally return to the Iranian oil market.