Japan is in final talks with Washington on an agreement on cuts in Iranian crude oil imports that could amount to more than 20 percent a year, the Nikkei business daily reported on Thursday, as Tokyo seeks to win waivers from US sanctions. Japan and the United States will reach a basic agreement by the end of February, sparing Japan's three main banks that currently handle payments to Iran from penalties, the Washington-datelined report said, without citing sources.
Avoiding sanctions is essential to protect the Japanese financial sector's operations abroad, but cutting oil imports could pose a risk to Japan's economy.