Japan is considering to impose financial sanctions on Iran if it rejects a package of incentives the world powers offered in exchange for the suspension of its uranium enrichment, a local newspaper said on Sunday.

Tokyo would ban the remittance of money from Japan to Iran if the country said "no" to the offer proposed on Thursday by the five U.N. Security Council permanent members including Britain, China, France, Russia and the United States, plus Germany, the Yomiuri Shimbun said, quoting government sources.

"Japan has been discussing with the United States at various levels, through the London meeting and on other occasions, the scope of a ban by Japan on [financial] transactions with Iran if sanctions were to be imposed on the country," the daily quoted an foreign ministry official as saying.

Iran is the third largest supplier of crude oil for Japan. Tokyo is keen on playing a role in resolving the Iranian nuclear issue.

The imposition of sanction is likely to hamper the joint development of Azadegan oil field in Iran, the paper said, noting that Japan's participation in sanctions against Iran is still seen as the worst-case scenario.

Source: Xinhua