Iran Courts South Korea and Japan to Maximize Crude Sales in 60-Day Window

Iran is seeking to secure crude buyers in major Asian markets including South Korea and Japan. The aim is to sell as much oil as possible during a 60-day sales window permitted under an earlier memorandum of understanding.

Bloomberg reported on June 23 that the National Iranian Oil Co., or NIOC, has recently contacted refiners in South Korea, India and Japan.

Iran has struggled to sell crude because U.S. sanctions blocked dollar payments. It had been exporting only limited volumes to China through indirect channels. With the sanctions pause in place, Tehran is looking for more buyers and trying to dispose of as much oil as possible from floating storage. Oil analytics firm Vortexa said Iran had about 68 million barrels of crude at sea as of June 22.

Still, major Asian buyers are in no hurry to take up Iran's offer. They have already built ample stockpiles to prepare for the possibility of a months-long closure of the Strait of Hormuz. A Taiyo Oil official said the company is not considering purchases of Iranian crude at this stage.

Future trade in Iranian crude will depend on how long U.S. sanctions relief remains in place. In Washington, lawmakers have moved to limit President Donald Trump's war powers and block further military action. The U.S. Senate on the same day passed a resolution aimed at preventing Trump from resuming war with Iran.

As geopolitical tensions eased, international oil prices fell to their lowest level in four months. Brent crude for August settlement closed down more than 1% at $77.08 a barrel on ICE Futures Europe in London. That was the lowest since Feb. 27, just before the war began.

Kim Dong-hyun, Hankyung.com reporter 3code@hankyung.com