Special insurance cover to ship Iranian oil

Japanese buyers of Iraniancrude will have to keep using special sovereign shipping insurance to import oil for the foreseeable future, despite the lifting of sanctions against Tehran, industry and government sources have said.

Shippers face uncertainty over whether they can get coverage from US insurers after sanctions were lifted and it means the Japanese government may have to get parliamentary approval to extend the scheme beyond March.

Tokyo stepped in to help its oil importers after Western sanctions imposed over Tehran's disputed nuclear programme curbed the ability of private insurers to provide tanker cover.