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U.S. efforts to cut off Iran's oil exports put Japan in tight spot

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The latest U.S. sanctions on Iran's oil exports have put Tokyo in a difficult position, with Japanese diplomats and companies scrambling to secure sufficient energy resources while avoiding penalties for continuing to do business with Tehran. Under the U.S. legislation, which was recently passed by Congress and is awaiting President Barack Obama's signature, Washington will penalize any financial institution found to be conducting business with Iran's central bank, Tehran's conduit for its oil exports. Iranian crude oil accounted for approximately 10 percent of Japan's total oil imports in fiscal 2010, and the government here is weighing how to end its oil trade with Tehran while maintaining the current level of supply. (Japan Times)

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