Persian Files ISSN 2975-0598 Volume 27 Issue 1
Author: Silvia Boltuc
Executive Summary
This report provides an analytical review of the developing relationship between Iran and Japan, focusing on areas of mutual interest and the strategic and diplomatic challenges that may affect this cooperation.
Based on recent local and international sources, and intelligence gathered from our monitoring activities, the report examines the potential for collaboration in transport, energy, and technological sectors, as well as Japan’s role in encouraging regional stability.
The analysis also highlights complexities arising from Japan’s alignment with the United States and ongoing tensions in the Middle East.
Background Information
On October 29th, 2024, the Iranian Minister of Transport and Urban Development, Farzaneh Sadegh, and Japanese Ambassador to Tehran, Tamaki Tsukada, held a high-level meeting to explore avenues for strategic cooperation.
Both sides identified critical sectors for collaboration, particularly transport infrastructure and advanced urban development technologies.
Sadegh highlighted Iran’s unique geographical positioning as a gateway connecting the East and West, offering Japan a pathway to expand its influence and access to Central Asia and the Caucasus. This aligns with Iran’s vision to become a key transit hub, supporting economic integration across Asia.
At this meeting, the two representatives discussed the need to establish direct flights between Iran and Japan, an initiative seen as essential to strengthening connectivity and supporting future business exchanges.
The Iranian minister proposed additional discussions among port officials to examine opportunities for enhancing cooperation in maritime transport and logistics. Ambassador Tsukada emphasised the extensive historical relationship between Japan and Iran, dating back over a thousand years. This longstanding connection, Tsukada argued, forms a solid foundation for collaboration not only in transport but also in knowledge exchange, resettlement initiatives, and the development of advanced earthquake-resistant infrastructure.
On October 21st, 2024, and September 23rd, 2024, Japan’s Foreign Minister, Iwaya Takeshi, and Iran’s Foreign Minister, Seyyed Abbas Araghchi, engaged in dialogues on Middle Eastern security and regional stability.
Iwaya expressed serious concerns regarding rising tensions, including an incident involving Iran and Israel. Emphasising the importance of diplomatic restraint, Iwaya urged Iran to avoid actions that could escalate conflict.
The two ministers also discussed the nuclear issue, with Japan reaffirming the necessity of Iran’s compliance with IAEA protocols as a step toward maintaining international trust and stability.
In August 2024, Iran’s Foreign Minister Sayyid Abbas Araghchi shared a further perspective on Iran’s stance in an interview with Japan’s Kyodo News Agency. Araghchi expressed a keen interest in expanding economic ties with Japan, with a specific emphasis on energy and trade.
He indicated that Iran’s distinct capabilities, particularly in oil production, could complement Japan’s energy needs, creating a mutually advantageous economic alliance. Araghchi underscored that Tehran’s new government prioritises relations with East Asia, positioning Japan as a primary partner in this strategic shift.
He further acknowledged the importance of dealing with hurdles, specifically those presented by U.S. sanctions, and underlined the Islamic Republic’s pledge to a diplomatic method aimed at handling tensions with Washington.
Scenario Analysis
Japan and Iran stand to benefit from deeper cooperation across a range of sectors, notably energy, infrastructure, and diplomatic collaboration on security issues.
Iran’s strategic location makes it an attractive partner for Japan, serving as a conduit for trade to neighbouring regions, such as the Caucasus and Central Asia.
Tehran’s proposals for joint ventures in oil production and advanced infrastructure development—especially in resilient urban technologies—open pathways for a strong bilateral economic relationship. The Japanese expertise in technology and infrastructure aligns well with the Iranian aspirations for smart urban systems and earthquake-resistant developments, which could pave the way for substantial technical and economic exchanges.
However, several diplomatic challenges may impede the progress of these initiatives. Tokyo’s close alliance with Washington necessitates a cautious approach in its dealings with Tehran, especially given the complex dynamics of U.S.-Iran relations.
U.S. sanctions remain a significant obstacle for Japanese companies interested in entering the Iranian market, particularly in the oil and energy sectors. While Tehran seeks Japanese participation in these industries, Tokyo’s adherence to U.S.-led sanctions policies could restrict Japan’s involvement in key projects, placing certain strategic objectives at risk.
Japan’s concerns over Middle Eastern stability underscore the potential friction points within the partnership.
Tokyo’s appeal for the Islamic Republic’s caution, especially in dealings with organisations like Hezbollah and the Houthis, demonstrates the nation’s concerns about regional instability. Japan largely bases its involvement in the Middle East on its commitment to security and stability, particularly concerning the safe passage of Japanese assets and personnel in strategic areas like the Red Sea and the Persian Gulf.
Iran’s confrontation with Israel, along with its influence over various regional entities, adds layers of complexity to any potential Japanese engagement in the region, requiring careful diplomatic navigation.
The nuclear issue remains another critical factor. Japan has consistently emphasised the importance of Tehran’s cooperation with the IAEA and adherence to the 2015 nuclear agreement, seeing this as essential for long-term stability.
Tokyo’s insistence on IAEA compliance reflects Japan’s commitment to regional security and international norms, which can create friction with Tehran’s domestic priorities. Both countries have signalled a willingness to pursue dialogue and establish a constructive foundation for addressing these issues. Multilayered diplomatic engagement between the two nations could provide a framework for mitigating risks, enabling Japan to balance its U.S. alliance while fostering a productive partnership with Iran.
Conclusion
Iran and Japan share significant opportunities for economic and technological collaboration, particularly in infrastructure, energy, and urban development.
The Islamic Republic of Iran’s strategic position as a transport hub and its resources in the energy sector offer valuable avenues for Japan to strengthen its presence in Asia. However, Tokyo’s alliance with Washington and regional security concerns present substantial diplomatic challenges.
The forthcoming U.S. presidential elections and the increasing tensions in the Middle East are crucial occurrences to observe when evaluating the future of Tehran-Tokyo’s relations and collaboration.
For further reports and consulting on Iran and Japan, contact us at info@specialeurasia.com and request a call to discover our intelligence monitoring services.
