The US appears to have successfully pressured resource-poor Japan to hold off on a $US2 billion ($A2.95 billion) oil deal with Iran because of concerns about the country's nuclear program. The deal to develop the Azadegan oilfield - the biggest find in Iran in 35 years - was supposed to be signed on Monday between the Iranians and a Japanese group that includes two-state run companies.
* * * * Japan is a chief US ally, and has been a strong supporter of the Bush Administration's action in Iraq. But the Iran oil deal has critical economic implications for Japan, which relies on imported oil for half its energy, almost 90 per cent of it from the Middle East. Saudi Arabia is the biggest supplier, accounting for about a third of imports, but Iran is the third biggest supplier. The new Iranian field would have helped offset Japan losing an oil concession in Saudi Arabia.
* * * * Japan's strong backing for the US-led action in Iraq was partly a reflection of its concern about the threat from North Korea.
http://www.theage.com.au/articles/2003/07/01/1056825392099.html