UPDATE 1-Japan finmin: no uncertainty on Iranian oil policy

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* Azumi rejects suggestions Japan isn't committed to U.S. sanctions

* Sanctions could push up oil prices and hurt global economy

By Stanley White

TOKYO, Jan 13 (Reuters) - Japan's finance minister said on Friday that there is no confusion over the government's policy of reducing Iranian oil imports in support of U.S. sanctions, rejecting suggestions from the cabinet's top spokesman that Japan isn't committed to take such steps.

Finance Minister Jun Azumi said on Thursday in a joint press conference with U.S. Treasury Secretary Timothy Geithner that Japan would take concrete steps to reduce oil imports from Iran as the U.S. tries to choke off oil revenue to prevent Iran from building nuclear weapons.

A few hours after Azumi's announcement, Chief Cabinet Secretary Osamu Fujimura told reporters that importing less Iranian oil was only one of many opinions on how to deal with the matter.

Buying less Iranian oil is sensitive for Japan because its reliance on energy imports has increased after the Fukushima nuclear disaster last year. But such a move is necessary because it would exempt Japanese banks from sanctions that would freeze financial institutions out of U.S. markets for facilitating trade in Iranian crude.

"There is no discrepancy in the government's stance," Azumi told reporters after a cabinet meeting.

"Japan's economy and financial system would suffer a shock without waivers from these sanctions. Our foreign minister has been travelling to the Middle East to help foster an environment that will allow us to reduce oil imports from Iran."

Geithner travelled to China and Japan this week to discuss the global economy and seek cooperation on stricter sanctions on Iran, an OPEC member and the world's fifth-largest crude exporter.

Iran denies Western suspicions that its nuclear programme has military goals, saying it is for purely peaceful purposes.

The United States has rejected Iran's assertion and has pressed ahead with new sanctions.

The latest law would freeze financial institutions that deal with Iran's central bank out of U.S. markets. The United States can waive some institutions if it deems it necessary for energy market stability or if the institutions' home country significantly reduces trade with Iran.

Iranian crude makes up 10 percent of Japan's overall oil imports.

Some in Japan are concerned the new sanctions could drive up oil prices, dealing a blow to its economy, which is recovering from the earthquake, tsunami and nuclear power disaster in 2011.

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