Iran oil shipment to India diverted to China: Report
The US-sanctioned Aframax tanker Ping Shun is now signaling Dongying in China as its destination, according to Kpler data. Earlier, it had indicated Vadinar on India’s west coast before abruptly changing course southward.
- Apr 3, 2026,
- Updated Apr 3, 2026 3:40 PM IST
A US-sanctioned tanker carrying Iranian crude has altered its course toward China, abandoning an earlier signal that indicated a potential delivery to India, an event that would have marked New Delhi’s first such import in nearly seven years, according to a Bloomberg report.
The vessel, Ping Shun, an Aframax tanker built in 2002 and sanctioned by the US in 2025, is now indicating Dongying in China as its destination, based on data from ship-tracking firm Kpler. Earlier in the week, the tanker had signaled Vadinar on India’s west coast, before making a sharp southward deviation. While such signals are indicative and can change, the shift underscores the uncertainty surrounding Iranian oil shipments.
The tanker had loaded crude from Iran’s Kharg Island in early March, according to tracking firms Kpler and Vortexa. The development comes at a time when India is grappling with elevated oil prices amid supply disruptions linked to tensions in West Asia, including the effective closure of the Strait of Hormuz during the ongoing US-Israel conflict with Iran.
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Last month, the US attempted to ease market pressures by granting temporary waivers for Iranian crude already loaded onto vessels. However, Indian state refiners have largely refrained from such purchases due to persistent challenges related to payments, shipping, and insurance.
India has not imported Iranian oil since May 2019, following the reimposition of US sanctions. Despite limited waivers, logistical and financial hurdles remain significant. Banks involved in dollar transactions across Asia have reportedly declined to process payments tied to Iranian crude, citing continued restrictions on dealing with sanctioned entities.
MUST READ: US pharma tariffs likely to have limited impact on Indian exports
Recent trade attempts reflect these complexities. A shipment of Iranian liquefied petroleum gas reached Mangalore in late March but remains undischarged, with payment issues still unresolved, highlighting the operational risks associated with such transactions.
A US-sanctioned tanker carrying Iranian crude has altered its course toward China, abandoning an earlier signal that indicated a potential delivery to India, an event that would have marked New Delhi’s first such import in nearly seven years, according to a Bloomberg report.
The vessel, Ping Shun, an Aframax tanker built in 2002 and sanctioned by the US in 2025, is now indicating Dongying in China as its destination, based on data from ship-tracking firm Kpler. Earlier in the week, the tanker had signaled Vadinar on India’s west coast, before making a sharp southward deviation. While such signals are indicative and can change, the shift underscores the uncertainty surrounding Iranian oil shipments.
The tanker had loaded crude from Iran’s Kharg Island in early March, according to tracking firms Kpler and Vortexa. The development comes at a time when India is grappling with elevated oil prices amid supply disruptions linked to tensions in West Asia, including the effective closure of the Strait of Hormuz during the ongoing US-Israel conflict with Iran.
MUST READ: West Asia War: Shockwaves ripple through India’s economy
Last month, the US attempted to ease market pressures by granting temporary waivers for Iranian crude already loaded onto vessels. However, Indian state refiners have largely refrained from such purchases due to persistent challenges related to payments, shipping, and insurance.
India has not imported Iranian oil since May 2019, following the reimposition of US sanctions. Despite limited waivers, logistical and financial hurdles remain significant. Banks involved in dollar transactions across Asia have reportedly declined to process payments tied to Iranian crude, citing continued restrictions on dealing with sanctioned entities.
MUST READ: US pharma tariffs likely to have limited impact on Indian exports
Recent trade attempts reflect these complexities. A shipment of Iranian liquefied petroleum gas reached Mangalore in late March but remains undischarged, with payment issues still unresolved, highlighting the operational risks associated with such transactions.