- Iran has begun talks with Japanese refiners to resume crude oil exports after US sanctions relief
- The US Treasury's current sanctions waiver for Iranian oil sales expires on August 21, 2026
- Japanese buyers remain cautious due to regulatory, legal, and marine security concerns
Following a reprieve of US sanctions, Iran has started negotiations with Japanese refiners to resume crude oil shipments, but Japanese purchasers are still cautious because of serious regulatory and marine security concerns, according to reports.
As Washington works towards a final peace agreement with Tehran in exchange for pledges on nuclear inspections and freedom of navigation through the Strait of Hormuz, the United States authorised Iranian oil sales in June, lifting decades-old sanctions, Reuters reported.
China has been the biggest buyer of Iranian oil in recent years after customers in South Korea, Japan, India and Europe ceased purchases as sanctions tightened following US President Donald Trump's departure from Iran's nuclear accord in 2018.
The US Treasury Department's current sanctions waiver enables the sale of crude oil, petrochemical and petroleum products of Iranian origin through August 21.
The current US Treasury Department waiver (General License X) gives a temporary 60-day window expiring on August 21, 2026. Japanese corporations consider this timescale as far too short to manage complicated compliance, legal, and banking requirements
Although General License X officially allows transactions in US dollars for the first time in decades, big financial institutions remain exceedingly risk-averse. Buyers fear secondary sanctions or policy reversals if Swiss-led peace efforts break down.
Iran has started discussions on resuming oil exports to Japan, though potential buyers are seeking a longer US sanctions waiver and assurances that shipping through the Persian Gulf will remain safe, IRNA reported.
As per IRNA, Japan was once a major buyer of Iranian crude before US sanctions were tightened after President Donald Trump's withdrawal from the 2015 nuclear deal in 2018. China has remained Iran's main oil customer in recent years.
Meanwhile, the "maximum pressure" sanctions campaign, which was initiated following the first Trump administration's May 2018 withdrawal from the Joint Comprehensive Plan of Action (JCPOA), has been significantly eased by General Licence X. However, Iran continued to flow oil through its shadow fleet and other sanctions-evasion strategies despite years of persistent pressure, with China absorbing the majority of exports while profiting from steep discounts, as per a report by Atlantic Council.
Iran's petroleum exports only drastically decreased during the US naval blockade that started in mid-April; exports started to rise nearly immediately after the blockade ended, the report further claims.
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