Japan's major oil distributors are considering halting oil imports from Iran in response to U.S. demands, sources familiar with the plan said Thursday.

Oil companies are planning to make up for the shortfall by increasing purchases from other Middle Eastern suppliers, such as Saudi Arabia, since imports of Iranian crude will likely stop by around October, the sources said.

For consumers in resource-poor Japan, the change would mean higher prices for gasoline and related products due to higher procurement costs.