US sanctioned Iran oil tanker turns away from India, heads to China

US-Iran war: A US-sanctioned vessel carrying Iranian crude oil has shifted course to China from its previously signaled destination of India, where it would have been the first such shipment in nearly seven years, as per a Bloomberg report.

The Ping Shun, an Aframax built in 2002 and sanctioned by the US in 2025, is currently signaling Dongying in China, according to Kpler, a ship-tracking firm.

Earlier this week the ship had indicated it would arrive at Vadinar on India’s west coast, but it has since taken a sharp turn to the south. Such destination signals are not final and may change at any time.


The tanker loaded crude from Kharg Island in early March, according to ship-tracking firms including Kpler and Vortexa.

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India is struggling with higher oil prices after the effective closure of the Strait of Hormuz as the US-Israeli war against Iran has disrupted Middle East fuel supplies.

The US last month tried to offer relief to the market by issuing temporary waivers on its sanctions for Iranian crude already loaded onto tankers. India’s state-backed buyers have so far avoided such purchases, as payment, shipping and insurance hurdles complicate potential transactions.

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India hasn’t purchased Iranian crude since May 2019, when it stopped importing barrels from the country due to US sanctions. US President Donald Trump has temporarily waived penalties for Iranian cargoes already at sea, but issues around payment, shipping and insurance have complicated potential transactions.

Such issues may still present challenges, though, as seen in the case of a recent sale of Iranian liquefied petroleum gas to India, people familiar with the matter earlier told Bloomberg. A vessel, Sea Bird, arrived at Mangalore on March 30, but has yet to discharge, with a port agent’s report saying that the receiver isn’t ready for the delivery yet. Payments issues were still being ironed out, the people said.

Even with the temporary waivers, some banks that serve as intermediaries in US dollar payments across Asia have indicated they won’t facilitate transactions for Iranian crude because that would entail dealing with sanctioned Iranian entities, which would still be prohibited, according to people familiar with the matter.

(With inputs from Bloomberg)