NICOSIA — Iran has threatened to cancel its oil development agreement with Japan.

Iranian parliamentarian Kamal Daneshyar, chairman of the Energy Committee, said Teheran plans to revoke an agreement with Japan to develop the Azadegan oil field. Daneshyar cited the delay by Japan in implementing the accord, which he said was the result of U.S. pressure.

"Japan should pay a fine for the five-year delay in implementation of the contract," Daneshyar told the official Iranian news agency Irna on Sept. 30.

In February 2004, Teheran and Japan's Inpex Corp signed an agreement for development of Azadegan, the largest Iranian onshore oil field. The project has been delayed since March 2005 amid Japan's claims of minefields and Iranian revisions.