A U.S.-sanctioned oil tanker carrying Iranian crude has changed course from India to China, raising uncertainty over what could have been India’s first Iranian oil import in nearly seven years. The Aframax tanker Ping Shun, built in 2002 and sanctioned by the United States in 2025, is now signaling Dongying, China, as its destination instead of Vadinar in Gujarat, according to data from Kpler.

The vessel had earlier indicated India as its destination during the same week, but shipping data suggests a shift that may not yet be final, as Automatic Identification System (AIS) signals can change. The cargo, estimated at roughly 600,000 barrels, was loaded from Kharg Island around Tuesday, March 4, 2026 (IST).

Industry analysts point to potential payment challenges as a likely reason for the rerouting. Sellers of Iranian crude are reportedly tightening payment terms, moving away from earlier 30–60 day credit arrangements toward upfront or near-term settlements. This shift is complicated by Iran’s continued exclusion from SWIFT, which restricts conventional international banking transactions.

The Vadinar refinery, operated by Rosneft-backed Nayara Energy, had been a potential destination for the shipment. India has not imported Iranian crude since May 2019, when tighter U.S. sanctions forced a halt despite Iran once accounting for as much as 11.5% of India’s oil imports.

Recent policy changes briefly reopened the possibility of trade. The United States issued a 30-day sanctions waiver last month allowing limited purchases of Iranian oil at sea, a move aimed at easing global oil prices. That window is set to expire on April 19, 2026.

Approximately 95 million barrels of Iranian oil are currently held on vessels globally, with about 51 million barrels potentially suitable for Indian refiners. However, unless payment mechanisms are resolved, shipments like Ping Shun’s may continue to favor destinations such as China, where buyers are more accustomed to navigating sanction-related constraints.