Trade between Japan and Iran has remained at historically low levels since the United States reinstated economic sanctions in 2018.
The most significant factor has been the near-total halt of Japan’s crude oil imports from Iran. As a result, Japan’s exports to Iran, primarily machinery and related goods, now account for the majority of bilateral trade. This has entrenched a structural and sizable trade surplus in Japan’s favor.
Based on trade statistics from Japan’s Ministry of Finance and data from JETRO, recent trends are summarized below.
1. Recent Trends in Japan–Iran Trade
In value terms, total trade, which once reached several hundred billion yen annually in the early 2010s, has contracted sharply. Today, annual trade stands at approximately 10 to 15 billion yen.
| Year | Export From Japan to Iran | Imports from Iran to Japan | Trade Balance | Notes |
| 2021 | Approx. 7.8 billion yen | Approx. 43.8 billion yen | +4 billion yen | Continued stagnation under sanctions |
| 2022 | Approx. 9.8 billion yen | Approx. 4.2 billion yen | +5.6 billion yen | Slight export increase partly due to weaker yen |
| 2023 | Approx. 12.3 billion yen Approx. | Approx. 3.7 billion yen | +8.6 billion yen | Exports rose about 20 percent year on year |
| 2024 | Approx. 13.0 billion yen | Approx. 3 to 4 billion yen | Surplus maintained | Auto-related goods and machinery remained firm |
| 2025 | Under compilation | Under compilation | - | Some signs of import recovery as of October 2025 |
As of January 2026, no major structural shift has taken place in 2025. Trade remains at low levels overall. However, in certain months, including October, imports increased compared with the same month a year earlier. The movement was mainly observed in non-oil products such as food items and textiles.
2. Major Trade Items
The previous trade structure, centered on crude oil and automobiles, has effectively disappeared.
Japan’s Exports to Iran
Exports now focus on goods not subject to sanctions and on general industrial machinery.
- General machinery includes gas turbine components, pumps, and construction equipment.
- Transport equipment consists mainly of automotive parts, particularly for replacement purposes, and limited shipments of finished vehicles.
- Chemical products include raw materials and rubber products such as tires.
- Electrical equipment covers consumer electronics and certain medical devices.
Japan’s Imports from Iran
Crude oil and petroleum product imports have remained at zero since 2019. Current imports are concentrated in traditional goods.
- Food products include pistachios, dried fruits such as dates, and fruit juices.
- Material-based products include carpets, including Persian rugs, and yarn for textiles.
- Chemical products consist of selected inorganic materials.
3. Overview and Analysis
Iran was once one of Japan’s key crude oil suppliers, with annual imports valued at 300 to 400 billion yen in the early 2010s. However, due to U.S. sanctions and the risk of secondary sanctions, Japanese companies have completely halted crude oil transactions. This remains the primary reason for the sharp contraction in bilateral trade.
Iran’s exclusion from the SWIFT international payment system has made standard trade settlement extremely difficult. As a result, new business engagement remains limited.
Unless there is a significant geopolitical change, such as sanctions relief, bilateral trade is expected to remain around 15 billion yen annually for the foreseeable future. If more detailed data is required on specific industrial machinery segments or on particular products such as pistachios, further analysis can be provided.
(Originally written Okamoto in Japanese, translated to English by Mehmet)
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