Japan turns to Canadian oil as Iran war blocks Hormuz Strait

Japan begins importing oil from Canada as war on Iran blocks Hormuz Strait

The US and Israel's war on Iran disrupted oil shipments through the Strait of Hormuz, pushing Japan toward Canadian crude. The tanker Freedom Glory, chartered by Exxon Mobil, made the first shipment from Vancouver to Japan.

Scraper SystemJuly 30, 2026, 11:10 AM

Japan begins importing oil from Canada as war on Iran blocks Hormuz Strait

As the US and Israel's war on Iran blocked oil shipments through the Strait of Hormuz, Japan began importing crude oil from Canada. According to data from tracking firm Kpler, the first Canadian crude shipment since 2025 set sail for Japan aboard a vessel 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, which departed Vancouver on Wednesday, is loaded with oil from the Trans Mountain pipeline (TMX). The shipment was purchased by Eneos, Japan's largest refiner.

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

Trans Mountain Pipeline Boosts Flow to Asia

The Trans Mountain pipeline carries up to 890,000 barrels of crude oil per day 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 went to Asia via TMX, up from 51% in 2024. Following the war on Iran, India, Malaysia, and Singapore also resumed taking oil shipped through TMX.

Canadian Oil Crucial for 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 hard about not supplying it.'

Japan begins importing oil from Canada as war on Iran blocks Hormuz Strait