Iran negotiates oil sales to Japan under US sanctions waiver amid Strait of Hormuz concerns

Iran and the United States signed a 14‑point interim memorandum of understanding on June 17, extending a cease‑fire by 60 days and committing the United States to waive certain sanctions on Iranian oil exports. The agreement also promises to reopen the Strait of Hormuz within 30 days, a key test for the deal’s implementation.

A temporary U.S. sanctions waiver, issued on June 22 and running until August 21, has enabled Iran to begin preliminary talks with Japanese firms about resuming crude oil shipments—the first such discussions since 2019. Three Japanese buyers are reportedly evaluating purchases, although they seek a longer exemption and guarantees of maritime safety before signing contracts. Shipping risks remain high: a recent Iranian attack on a container vessel, the Revolutionary Guard’s clearance requirement for transits, and an UN estimate of about 80 floating mines in the strait all complicate insurance and logistics.

Oil markets reacted with a price dip, reflecting expectations of additional supply if the waiver leads to substantive sales. China continues to be Iran’s main oil customer, while Japan’s ministries have not confirmed formal negotiations.