Japan has told the US that it is not prepared to stop importing oil from Iran due to the impact it could have on the global economy.

The US is trying to introduce a law that would limit the amount of dollar transactions with countries that also deal with Iran. However, many experts believe such a law or similar sanctions could lead to a spike in oil prices, which would in turn benefit Tehran in the form of increased hydrocarbon revenues.

Japan is Iran’s second-largest customer for its oil and imports about 10 per cent of its total consumption from the oil-producing country. China is Iran’s largest customer.