Japan is eager to do business with Iran.

J. Berkshire Miller analyzes Japan’s investment interests in Iran:  One of Japan’s key targets is Iran’s potentially lucrative Azadegan oil fields, near the border with Iraq. According to Iranian government estimates, the Azadegan fields could contain over 30 billion barrels of oil in reserve. Tokyo has been interested in working with Tehran to develop the oil fields for the past two decades and at one point, in 1996, had a nearly 75 percent stake in the southern Azadegan fields through Inpex, a Japanese oil company.”

But don’t call it a complete reset just yet.  While Tokyo is looking to increase its investment footprint in Iran, and indeed its presence in the entire Middle East, it will likely tread carefully so as not to upset relations with arguably its most important ally, the United States:

Tokyo remains sensitive to the lingering problems in the relationship between its key ally, the U.S., and Iran, which are not limited to the nuclear issue. During a meeting with Iran’s foreign minister earlier this year, Japan’s foreign minister, Fumio Kishida, expressed concern about longstanding military ties between Iran and North Korea and requested that Iran sever ‘all military cooperation with North Korea.’