Japan's Largest Bank to Halt Cooperation with Iran

Reuters has obtained documents indicating that the financial group "Mitsubishi UFJ," Japan's largest bank, intends to cease all financial transactions with Iran due to the re-imposition of U.S. sanctions against the Islamic Republic. The news agency reported this on Thursday (July 12) based on "documents" they have seen. This news follows reports from Japanese media on July 3, citing officials from the country, that Shinzo Abe, Japan's Prime Minister, canceled his planned trip to Tehran this month due to increasing U.S. pressure on Iran. According to Japan's official news agency, Kyodo, the Japanese government was planning for Shinzo Abe's visit to Tehran and his meeting with Hassan Rouhani this month, which could have been the first visit by a Japanese Prime Minister to Iran since 1978. Reuters reported on Thursday that the largest Japanese bank might also ask its clients to halt transactions with Iran, as most international trade transactions are conducted through financial institutions. Donald Trump, the President of the United States, unilaterally announced the U.S. withdrawal from the international nuclear agreement (JCPOA) in May and announced the re-imposition of previously lifted sanctions against Iran. Shortly thereafter, Washington asked countries around the world to stop purchasing crude oil from Iran by November 4 of this year or face consequences. Japan is one of the major buyers of Iranian crude oil, and the "Mitsubishi UFJ" financial group conducts most of the financial transactions related to Tokyo's crude oil imports from Tehran. According to Reuters, since global financial institutions' cooperation with Iran will be prohibited after the U.S. 180-day deadline on November 4, this Japanese bank has informed its clients in this regard. Reuters wrote that in a document seen by its reporters, the bank informed clients that if new guidelines were issued by the United States, the "Mitsubishi UFJ" financial group might also reconsider its policy. On July 1, Bloomberg reported, citing informed sources, that the United States had asked Japan to completely stop purchasing oil from Iran. At the same time, Reuters reported, quoting the President of the Japanese Oil Association, that if issues related to money transfers and sanctions against Iran are not resolved, Japan will likely be unable to purchase oil from Iran starting in October. Takashi Tsukiyoka stated that the decision regarding oil imports from Iran will likely be made in August, and Japan will consider the actions of other Asian customers of Iran, such as China, India, and South Korea. A few days later, a Japanese government official said Tokyo is examining the implications of the U.S. sanctions against Iran to prevent their impact on Japanese companies. Yoshihide Suga, a senior government spokesman, stated that Japan has held discussions with the U.S. regarding the imposition of sanctions on Iran but refrained from providing details. He also mentioned that Japan is in contact with Iran regarding this matter. Last year, Japan was the fourth largest Asian customer of Iranian oil, importing 172,000 barrels per day, which accounted for approximately 5.3% of Japan's total oil imports.