Iran has begun discussions with Japanese companies about resuming oil exports to Japan, raising the possibility of restoring energy trade that has been suspended since 2018.

The talks are taking place under a US sanctions waiver that could allow limited Iranian oil sales to proceed, The Caspian Post reports via Reuters.

Japan has not imported Iranian crude since 2018, when it halted purchases following the reimposition of US sanctions after President Donald Trump withdrew the United States from the Iran nuclear agreement.

Japanese oil buyers are reportedly hoping that Washington will extend the current waiver, which is set to expire on August 21. They are also seeking assurances that commercial shipping can continue to pass safely through the Persian Gulf.

Following the 2018 sanctions, countries including Japan, South Korea, India, and members of the European Union stopped importing Iranian oil. Since then, China has remained Iran's largest crude oil customer.