By Jonathan Saul and Parisa Hafezi
LONDON/DUBAI, July 3 (Reuters) – Iran has started discussions with Japanese companies, enabled by a U.S. sanctions waiver that allows it to sell oil again. However, potential buyers are asking for a longer waiver and guarantees about the safety of shipping routes, according to three sources from Iran and the West.
This waiver is part of ongoing peace talks between Tehran and Washington, issued on June 22, and it will expire on August 21.
Three Japanese companies are considering purchasing crude oil from Iran, which would be their first transaction since 2019. This information comes from two Iranian sources who wish to remain anonymous due to the sensitive nature of the issue.
Officials from Japan and Iran have begun initial discussions regarding oil sales, as confirmed by a Western source familiar with the situation.
An official from Japan's Ministry of Economy, Trade and Industry (METI), responsible for fuel supply infrastructure, stated he was unaware of these developments.
Japan's foreign ministry and the U.S. Treasury have not responded immediately to requests for comments from Reuters.
Japan, South Korea, India, and various European nations halted purchases of Iranian oil when U.S. sanctions were tightened after former President Donald Trump withdrew from the nuclear agreement with Iran in 2018.
In recent years, China has been the primary buyer of Iranian oil.
HORMUZ RISKS
Any purchases from Japan would be made by private companies, according to another METI official, who mentioned that it remains uncertain if such deals would happen because of shipping time and existing contracts.
Additionally, the safety of tanker voyages would need to be guaranteed, the official stated.
A senior Iranian official indicated that any agreements would require the U.S. to extend the current waiver due to the shipping time from Japan to Iran.
The official also mentioned that cargoes would be loaded at Iran's Kharg Island and transported by Japanese-operated tankers.
A senior official from Iran's oil ministry informed Reuters that the National Iranian Oil Company (NIOC) has reached out to traditional buyers, including Japan, expressing that if a peace agreement is reached and sanctions are lifted, they would like these buyers to restart their purchases.
Iran's oil ministry has not responded to requests for comments.
The Strait of Hormuz is still considered unsafe for shipping, and it is unclear how operations will proceed once a lasting peace deal between Tehran and Washington is finalized.
Recently, an Iranian force attacked a container ship in the Strait of Hormuz, and Iran’s elite Revolutionary Guards have stated that all transits through the strait must receive their approval.
The U.N. shipping agency estimates that there are about 80 floating mines in the central part of the waterway.
Securing insurance for these operations could be a significant hurdle, according to a senior official from a major Japanese oil refinery.
The existing temporary U.S. sanctions waiver is not expected to attract orders from well-stocked Asian refineries, which means independent Chinese refineries may remain the main buyers, as indicated by trade sources and analysts.