<p>New Delhi: A US-sanctioned Aframax tanker carrying Iranian crude oil has changed its declared destination mid-voyage from India to <a href="https://www.deccanherald.com/tags/china">China</a>, apparently due to payment-related difficulties.</p><p>The tanker Ping Shun, built in 2002 and sanctioned by the US in 2025, had initially signalled Vadinar in <a href="https://www.deccanherald.com/tags/gujarat">Gujarat </a>as its destination. </p><p>It was loaded with approximately 600,000 barrels of oil from Kharg Island around March 4, originally estimated time of arrival (ETA) at Vadinar was April 4.</p>.India's 1st Iranian oil cargo since 2019 headed to Gujarat coast.<p>According to ship-tracking firm Kpler, the vessel is now heading to Dongying in China.</p><p>There is no confirmation that the current AIS (Automatic Identification System) destination is final, as tankers can alter course at any time.</p><p>Had shipment reached Vadinar, it would be India's first Iranian crude import since 2019.</p><p>Indian refiners had been exploring opportunities to buy Iranian oil on water following a recent 30-day US sanctions waiver aimed at easing oil prices amid the US-Israeli conflict with Iran. The waiver expires on April 19.</p><p>The rerouting is believed to stem from tightened payment terms by sellers, who are shifting away from the previous 30-60 day credit window toward upfront or near-term settlement.</p><p>The actual buyer and seller of the cargo remain unclear.</p><p>Vadinar hosts a 20 million tonnes per year refinery owned by Nayara Energy, backed by Russian oil giant Rosneft.India's oil ministry has stated that any decision to resume Iranian crude purchases will be driven by techno-commercial feasibility.</p><p>Prior to sanction, India imported significant volumes of Iranian light and heavy grades of crude oil due to strong refinery compatibility and favourable commercial terms.</p><p>Imports from Iran stopped in May 2019 after US sanctions were tightened in 2018, with supplies replaced by Middle Eastern, US, and other grades. At its peak, Iranian oil accounted for 11.5 per cent of India's total crude imports.</p><p>An estimated 95 million barrels of Iranian oil are currently on vessels at sea, of which around 51 million barrels could potentially be directed to India, while the rest are better suited for China and Southeast Asia. </p><p>However, payment challenges persist as Iran remains disconnected from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) -- a global messaging network used by banks, since March 2012 following European Union sanctions over its nuclear programme.</p><p>Previous Indian purchases from Iran were settled in euros through a Turkish bank intermediary, an option that is no longer available.The US waiver has allowed purchases of oil already at sea, but uncertainties around payment mechanisms continue to complicate deals.</p>
<p>New Delhi: A US-sanctioned Aframax tanker carrying Iranian crude oil has changed its declared destination mid-voyage from India to <a href="https://www.deccanherald.com/tags/china">China</a>, apparently due to payment-related difficulties.</p><p>The tanker Ping Shun, built in 2002 and sanctioned by the US in 2025, had initially signalled Vadinar in <a href="https://www.deccanherald.com/tags/gujarat">Gujarat </a>as its destination. </p><p>It was loaded with approximately 600,000 barrels of oil from Kharg Island around March 4, originally estimated time of arrival (ETA) at Vadinar was April 4.</p>.India's 1st Iranian oil cargo since 2019 headed to Gujarat coast.<p>According to ship-tracking firm Kpler, the vessel is now heading to Dongying in China.</p><p>There is no confirmation that the current AIS (Automatic Identification System) destination is final, as tankers can alter course at any time.</p><p>Had shipment reached Vadinar, it would be India's first Iranian crude import since 2019.</p><p>Indian refiners had been exploring opportunities to buy Iranian oil on water following a recent 30-day US sanctions waiver aimed at easing oil prices amid the US-Israeli conflict with Iran. The waiver expires on April 19.</p><p>The rerouting is believed to stem from tightened payment terms by sellers, who are shifting away from the previous 30-60 day credit window toward upfront or near-term settlement.</p><p>The actual buyer and seller of the cargo remain unclear.</p><p>Vadinar hosts a 20 million tonnes per year refinery owned by Nayara Energy, backed by Russian oil giant Rosneft.India's oil ministry has stated that any decision to resume Iranian crude purchases will be driven by techno-commercial feasibility.</p><p>Prior to sanction, India imported significant volumes of Iranian light and heavy grades of crude oil due to strong refinery compatibility and favourable commercial terms.</p><p>Imports from Iran stopped in May 2019 after US sanctions were tightened in 2018, with supplies replaced by Middle Eastern, US, and other grades. At its peak, Iranian oil accounted for 11.5 per cent of India's total crude imports.</p><p>An estimated 95 million barrels of Iranian oil are currently on vessels at sea, of which around 51 million barrels could potentially be directed to India, while the rest are better suited for China and Southeast Asia. </p><p>However, payment challenges persist as Iran remains disconnected from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) -- a global messaging network used by banks, since March 2012 following European Union sanctions over its nuclear programme.</p><p>Previous Indian purchases from Iran were settled in euros through a Turkish bank intermediary, an option that is no longer available.The US waiver has allowed purchases of oil already at sea, but uncertainties around payment mechanisms continue to complicate deals.</p>
