A US-sanctioned oil tanker carrying Iranian crude has changed its course mid-voyage, shifting its destination from India to China. The Aframax tanker Ping Shun, built in 2002 and sanctioned in 2025, was initially headed to Vadinar in Gujarat—potentially marking India’s first Iranian oil import in nearly seven years—but is now signalling Dongying, China, according to ship-tracking firm Kpler. However, AIS destination signals are not always final and may change during transit.

According to Kpler analyst Sumit Ritolia, the vessel had been en route to India for several days before dropping Vadinar as its declared destination near arrival. The rerouting is believed to be linked to payment concerns, with sellers tightening terms from earlier 30–60 day credit periods to upfront or near-term payments. The identities of the buyer and seller remain unclear.

The cargo on Ping Shun would have represented India’s first Iranian crude purchase since 2019, as refiners explore opportunities following a temporary US sanctions waiver. Vadinar hosts a major refinery operated by Nayara Energy, backed by Rosneft. Ritolia noted that such mid-voyage changes are not unusual for Iranian oil shipments but reflect growing sensitivity to financial conditions and counterparty risks. If payment issues are resolved, the cargo could still be redirected to India, but the situation highlights how commercial terms now play a crucial role alongside logistics in determining trade flows.

India was once a significant importer of Iranian crude, which accounted for up to 11.5 percent of its total imports. However, purchases ceased in May 2019 after tighter US sanctions, with supplies replaced by oil from the Middle East, the US, and other sources. In 2018, India imported about 518,000 barrels per day of Iranian oil, which dropped to 268,000 bpd in early 2019 during a waiver period before stopping entirely. Indian refiners traditionally bought Iran Light and Iran Heavy grades.

The US allowed a temporary 30-day waiver for purchasing Iranian oil already at sea, aiming to stabilize rising prices amid geopolitical tensions. This window is set to expire on April 19. Around 95 million barrels of Iranian oil are currently floating at sea, with roughly 51 million barrels potentially suitable for India. Ping Shun is estimated to be carrying about 600,000 barrels loaded from Kharg Island in early March, with an earlier expected arrival in Vadinar on April 4.

Despite the waiver, payment remains a challenge, as Iran is excluded from the SWIFT global banking system. Earlier transactions were routed through intermediary banks, such as in Turkey, but those channels are no longer available. Iran was first cut off from SWIFT in 2012 due to EU sanctions over its nuclear program, severely limiting its financial transactions. Further restrictions were imposed in 2018 after the US reinstated sanctions, further constraining Iran’s ability to receive payments, conduct trade, and access foreign reserves.