Japanese refiners will start buying Iranian crude oil in January, but will only continue buying until March to make sure they don’t get on the bad side of Washington in case the 180-day sanction waivers are not extended, S&P Global Platts reports, citing the head of the country’s Petroleum Association.

"We aim to lift as much as possible over January-March to keep our hope for the next [period]," Takashi Tsukioka said.
Japan is one of Iran’s largest oil importers, but it is also the United States’ staunchest ally in Asia—and the combination of the two has not worked to Tokyo’s advantage. Earlier this year, while the government tried to secure a waiver from the U.S. State Department, local refiners stopped all purchases of Iranian oil ahead of the sanctions that came into effect on November 5.
The Trump administration has made it clear the ultimate goal of the sanctions was to bring Iranian oil exports down to zero, which puts a question mark over any extensions. On the other hand, Japan, like China, India, and South Korea, may find it hard to secure alternative supplies in amounts and for prices that would justify them, hence the three-month buying spree Japanese refiners are preparing to embark on.

(Source: oilprice.com)