Japan considers buying Iranian crude as US sanction waiver expires

Japan is in talks with Iranian firms to resume crude oil purchases, the first potential imports since 2019. The negotiations follow a U.S. temporary sanction‑waiver issued on 22 June, which is set to lapse on 21 August unless extended. Three Japanese companies are assessing the deal, but they cite the short waiver period and the need for guaranteed tanker safety through the Hormuz Strait as major concerns.

Iran’s National Iranian Oil Company has contacted traditional customers, including Japan, and indicates that any shipment would be loaded at the Kharg island terminal and shipped on Japanese‑operated vessels. Japan, the world’s fourth‑largest crude importer, holds the largest strategic petroleum reserve at 263 million barrels. The move comes after years of Iranian oil bans by Japan, South Korea, India and Europe following the U.S. tightening of sanctions after the 2018 U.S. withdrawal from the JCPOA, while China remains Iran’s primary oil buyer.