TOKYO (Reuters) – Japanese insurers are expanding their maritime coverage to allow more domestic tankers to transport Iranian crude, as Tokyo looks to keep oil flowing despite tough Western sanctions, industry sources said on Wednesday.
Japan, Iran's third biggest oil buyer, is expected to resume imports of the OPEC member's crude in August after halting shipments this month as buyers held back to avoid any risk of running afoul of European Union sanctions, which took effect last week.
The EU oil embargo has stopped European insurers, who dominate the maritime sector, from offering cover on Iranian crude. Industry watchers say the EU step has proved to be the hardest hitting measure in the West's arsenal of sanctions aimed at Iran.
Tokyo has slashed its purchases of Iranian crude to comply with Western sanctions, but wants to avoid more drastic reductions that could drive up energy import costs and hurt the world's third-largest economy.
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