Canadian oil heads to Japan for the first time in over a year as Iran war tightens Middle East supplies

A cargo of Canadian crude was headed to Japan, ship tracking data showed on Wednesday, the first Canadian crude shipment to the country since early 2025, as the war between the U.S. and Iran has tightened supplies of Middle East crude.

Here are the details:

• Marshall Islands-flagged Freedom Glory, an Aframax ship that can carry up to 750,000 barrels of crude, loaded oil shipped via the Trans Mountain pipeline in Vancouver and was on its way to Kiire in Japan, according to ship tracking data on Kpler and LSEG. The ship was chartered by Exxon Mobil and cargo was bought by Japan's largest refiner Eneos, Kpler data showed. The Trans Mountain pipeline (TMX) moves oil from Alberta to Vancouver from where it can be exported.
• "Japan's renewed purchases of TMX crude highlight Canada's growing role in Asia's evolving import strategy as refiners diversify away from Middle East Gulf supplies," Richard Ro, a senior market analyst at Kpler, said.
• Japanese refineries have been seeking to diversify supply sources, after the Iran war choked shipments of crude oil through the Strait of Hormuz. More recently, the Iran-aligned Houthis declared a maritime embargo against Saudi Arabia, expanding attacks on tankers carrying global energy and other supplies to waters beyond the Gulf.
• The percentage of exports to Asia from Vancouver via the TMX pipeline has steadily climbed. Asian exports accounted for about 77% of total oil exports from Vancouver in 2026, compared with about 51% in 2024.
• India, Malaysia, Singapore have all returned to purchasing crude shipped via the TMX pipeline since the Iran war broke out at the end of February.