New Delhi: An Iranian crude oil tanker under US sanctions has changed course from India to China mid-voyage, highlighting ongoing challenges in global oil trade amid sanctions and payment issues.
The Aframax tanker Ping Shun, built in 2002 and sanctioned by the United States in 2025, was initially headed for Vadinar in Gujarat. However, it has now updated its destination to Dongying in China.
Had the shipment reached India, it would have marked the first delivery of Iranian oil to the country in nearly seven years.
According to ship-tracking firm Kpler, the diversion appears linked to payment-related issues. Sellers are reportedly demanding immediate or near-term settlement instead of the earlier 30–60 day credit window.
Indian refiners had been exploring options to import Iranian crude following a recent sanctions waiver by the US, valid until April 19. However, payment mechanisms remain a key hurdle as Iran is excluded from the SWIFT international banking system.
The tanker is carrying around 600,000 barrels of crude loaded from Kharg Island. Uncertainty over payment channels continues to complicate potential oil trade between India and Iran.
