The saga continues. Iwata suggested I apply beeswax to the base of the nozzle and threads around the nozzle cap, didn’t help. I’ve also checked the nozzle, needle, nozzle cap under magnification and I can’t see anything that would cause concern. At this point I’m considering a warranty claim through Iwata, from a glimpse at their website I believe I’d have to send it to the US? Do Iwata have any UK based repair/service centres that can deal with warranty claims?