Japan turns to Canadian crude amid Hormuz supply disruption

Japan has started importing crude oil from Canada after shipments through the Strait of Hormuz were disrupted by the US and Israel's war on Iran. The first cargo, which left Vancouver on a tanker chartered by Exxon Mobil, was bought by Eneos, the country's largest refiner.

Scraper SystemJuly 30, 2026, 11:06 AM

Japan turns to Canadian crude amid Hormuz supply disruption

Japan has turned to Canadian crude after shipments through the Strait of Hormuz were disrupted by the war waged by the US and Israel against Iran. According to tracking firm Kpler, the first Canadian crude cargo since 2025 has departed for Japan aboard a tanker chartered by Exxon Mobil.

The Marshall Islands-flagged tanker Freedom Glory has a capacity of up to 750,000 barrels of crude oil. The vessel departed Vancouver on Wednesday, loaded with oil from the Trans Mountain pipeline (TMX). According to Kpler, the shipment was purchased by Eneos, Japan's largest refiner.

Tokyo has lowered its growth forecast for this year from 1.3% to 0.9%, citing the impact of rising oil prices. Until the US and Israel launched their war on Iran in February, Japan sourced more than 90% of its oil imports through the Strait of Hormuz. With the war choking off shipments through the strait, Japan, like many other Asian countries, has scrambled to diversify its suppliers.

Trans Mountain Pipeline and Exports to Asia

The Trans Mountain pipeline carries up to 890,000 barrels per day of crude oil from Alberta to the Burnaby marine terminal in British Columbia. Owned by the federal government, the pipeline has been operating at nearly 90% capacity since the third quarter of 2025.

This year, about 77% of total oil exports from Vancouver have gone to Asia via TMX, up from 51% in 2024. Following the war on Iran, India, Malaysia and Singapore have also resumed taking oil shipped through TMX.

Canadian oil is the largest supplier to the US

According to the US Energy Information Administration, Canadian oil accounts for about 60% of US crude oil imports. However, Canadian Prime Minister Mark Carney said he does not plan to use oil as a bargaining chip in negotiations with Washington.

Despite the Trump administration announcing new tariffs on Canadian goods last week, Carney said, "Canadians can be trusted. When you are a supplier of a key commodity... you really have to think twice about not supplying it."

Source: Al Jazeera

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