China, Japan, South Korea worried over new sanctions against Iran

The new sanctions against Iran, proposed by US president Barack Obama, will put three Asian nations – China, Japan and South Korea – on a path of confrontation with the superpower.

All three nations depend on Iran for a significant part of their oil supplies. The new sanctions being proposed by the US would target financial institutions doing business with Iran's central bank, hurting their ties with American institutions.

Japan and South Korea, which enjoy close ties with the US, would end up in an awkward position, as they are dependent on imported oil, including from Iran.

''There are some thorny issues between the US and Japan, but since we're so dependent on the US forces for our national defence, I don't think we have any other choice but to follow the lead of Washington,'' said Koichiro Tanaka, a director at the Institute of Energy Economics, Tokyo. Japan's imports from the Middle East soared last year after its nuclear reactors were forced to shut down following the tsunami.

The Japanese foreign minister will shortly be visiting the Gulf, meeting officials in Saudi Arabia, the UAE and Qatar. ''We are considering our response and are closely discussing the matter with the US,'' a Japanese foreign ministry spokesman said.

An official South Korean spokesman said his government was also in talks with the US to reduce the negative impact of the sanctions.

Korea imports almost all of its oil and Iran contributes about 10 per cent of its supplies. The tough new sanctions proposed by Obama could hurt Korea's economy badly.
Iran's threats of shutting down the narrow Strait of Hormuz, which has seen oil prices spurt, is also hurting the three Asian economies.

Last year, Iran accounted for 11 per cent of China's oil imports. For Iran, China is the biggest customer, buying nearly a third of its crude oil exports. China is expectedly opposed to tougher sanctions against Iran and has said it would not back the US.

''Sanctioning is not the correct approach to easing tensions,'' said a Chinese government spokesman. ''China opposes the placing of one's domestic law above international law and imposing unilateral sanctions on other countries.''