Japan turns to Canadian crude as Asia feels Hormuz supply pinch

What the report says

Al Jazeera, citing DPA, Reuters and shipping data from Kpler, reported that Japan is receiving its first cargo of Canadian crude since 2025 as Asian buyers look for alternatives to oil supplies affected by uncertainty around the Strait of Hormuz. The report said the Marshall Islands-flagged Freedom Glory, chartered by Exxon Mobil and able to carry as much as 750,000 barrels, departed Vancouver on Wednesday with crude shipped through Canada’s Trans Mountain pipeline system. Kpler identified Japan’s Eneos, the country’s largest refiner, as the buyer.

The shipment comes as Japan faces pressure from higher energy costs. According to the report, Tokyo on Thursday lowered its annual growth forecast to 0.9 percent from 1.3 percent. Al Jazeera said Japan had previously relied on the Hormuz route for more than 90 percent of its oil imports before the US and Israel launched a war on Iran in February, after which shipments through the waterway were disrupted.

The Trans Mountain pipeline moves crude from Alberta to a marine terminal in Burnaby, British Columbia, with capacity of up to 890,000 barrels a day. Al Jazeera reported that the federally owned system has operated at nearly 90 percent capacity since the third quarter of 2025, and that Asia’s share of Vancouver oil exports through TMX has risen this year compared with 2024.

The report also noted that India, Malaysia and Singapore have resumed purchases of TMX crude since the war on Iran. Separately, Canadian Prime Minister Mark Carney said he did not plan to use Canadian oil supplies as bargaining power with Washington after new US tariffs on Canadian products.