Iran has started discussions with Japanese companies about resuming oil sales under a U.S. sanctions waiver, with three Iranian and Western sources telling Reuters that prospective buyers are seeking both a longer sanctions relief period and guarantees regarding tanker safety while traveling through the Persian Gulf.

The U.S. authorized Iranian oil sales in June as part of efforts toward a final peace agreement with Tehran. The current waiver allows exports through Aug 21, according to the report.

The sources said three Japanese buyers were evaluating potential purchases of Iranian crude, their first since 2019. Two Iranian sources indicated that these talks are underway with private-sector Japanese firms, while Japan’s government ministry overseeing fuel supply infrastructure said it was not aware of specific deals.

Buyers’ main concerns include whether the sanctions relief will be extended beyond the current expiration date—given shipping timelines between Japan and Iran—and whether voyages through the Strait of Hormuz can be conducted safely. The report notes continued security risks in the region, including the presence of floating mines estimated by the UN shipping agency, as well as recent attacks in the waterway. It also highlights that securing insurance could be a major obstacle for Japanese refiners.

Overall, analysts cited in related reporting suggest that a short, temporary waiver may not immediately trigger broader buying from many Asian refiners, leaving China likely to remain the dominant destination if Iranian exports resume.