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- October 23, 20268°
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- INTEREST36.00%-1.00
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- October 23, 20268°
Japan turns to Canadian oil as US-Israel war on Iran disrupts Hormuz shipments
After disruptions in the Strait of Hormuz, Japan imported crude oil from Canada via a tanker chartered by Exxon Mobil. The shipment, purchased by the country's largest refiner Eneos, was the first since 2025.
As the US-Israel war on Iran disrupted oil shipments through the Strait of Hormuz, Japan turned to Canadian crude. According to data from tracking firm Kpler, a vessel chartered by Exxon Mobil delivered the first Canadian crude shipment to Japan since 2025.
The Marshall Islands-flagged tanker Freedom Glory departed Vancouver with a capacity of 750,000 barrels. The oil it loaded had been transported via the Trans Mountain pipeline (TMX). According to Kpler, the shipment was purchased by Eneos, Japan's largest refiner.
Until the war began in February, Japan sourced more than 90% of its oil imports through the Strait of Hormuz. The bottleneck in the strait has pushed many Asian countries, including Japan, to seek alternative suppliers. Tokyo lowered its growth forecast for this year from 1.3% to 0.9% due to rising oil prices.
Trans Mountain Pipeline Boosts Flow to Asia
The federally owned Trans Mountain pipeline carries up to 890,000 barrels per day of crude oil from Alberta to the Burnaby terminal in British Columbia. 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 went to Asia via TMX. That share stood at 51% in 2024. Following the war on Iran, India, Malaysia and Singapore also resumed taking oil shipped through TMX.
Canadian Oil Critical for US
According to the US Energy Information Administration, Canadian oil accounts for about 60% of US crude oil imports. Canadian Prime Minister Mark Carney said he does not plan to use oil as a bargaining chip in negotiations with Washington.
Despite the administration of US President Donald Trump 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."
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