Japan seeks Mexican oil to replace Iranian flow

Japan is putting the finishing touches on a $1 billion-plus deal to secure increased oil supplies from Mexico -- a deal that has assumed urgency in the aftermath of Monday's cutoff of Iranian oil to Japan. In return for the oil, Prime Minister Masayoshi Ohira is expected to pledge substantial Japanese cooperation for ambitious Mexican plans to become a major steel-producing nation.

Japan is also negotiationing with the United States for Alaskan oil.