Iran Seeks Japanese Oil Buyers Under US Sanctions Waiver

The United States Department of the Treasury issued a general license on June 22 allowing Iran to sell crude oil and petrochemical products through August 21. This 60-day waiver is part of a diplomatic dialogue between Washington and Tehran involving negotiations in Switzerland over nuclear inspections and freedom of navigation in the Strait of Hormuz.

Following the waiver, Iran initiated talks with three Japanese companies to resume oil sales for the first time since 2019. Iranian officials designated Kharg Island as the loading site for these cargoes. However, Japanese buyers are requesting a longer exemption and guarantees regarding ship security before finalizing deals, citing long shipping times and insurance requirements.

Security concerns center on the Strait of Hormuz, where the UN reports approximately 80 floating mines and Iranian forces recently attacked a container ship. Additionally, the Islamic Revolutionary Guards Corps Research and Self-Sufficiency Jihad Organization has demanded that all transits through the strait be cleared with them.

U.S. officials expressed conflicting views on the waiver's effectiveness. While Energy Secretary Chris Wright suggested Iran could now sell oil in U.S. dollars, Treasury Secretary Scott Bessent argued that Iran remains largely unable to sell to buyers other than China. Bessent stated that potential purchasers fear future re-sanctions, a situation he believes provides Tehran with an incentive to continue negotiations.