Sanctioned tanker diverts Iranian oil shipment from India to China

A US-sanctioned oil tanker carrying Iranian crude has altered its course towards China after previously signalling India as its destination, in what would have marked the first such shipment to the country in nearly seven years.

Bloomberg reported that the vessel, Ping Shun — an Aframax tanker built in 2002 and sanctioned by the United States in 2025 — had earlier indicated it was heading to Vadinar port on India’s west coast. However, according to ship-tracking data from Kpler, it has since shifted direction southwards and is now signalling Dongying in China as its intended destination. Industry experts note that such signals are provisional and can change during transit.

India has not imported Iranian crude since May 2019, when it halted purchases following US sanctions on Tehran. Although US President Donald Trump recently introduced a temporary waiver for Iranian cargoes already at sea, logistical challenges — including payment mechanisms, shipping constraints and insurance issues — have continued to complicate any potential resumption of trade.

Earlier reports had suggested that India was on track to receive its first Iranian shipment in years under the waiver. Data indicated that the Ping Shun was transporting roughly 600,000 barrels of crude from Kharg Island, Iran’s primary export terminal, with an expected arrival in early April after a month-long voyage.

Moneycontrol said Kharg Island, located about 25 kilometres off Iran’s coast, handles the vast majority of the country’s oil exports and remains a strategically sensitive facility. It has also been the subject of heightened rhetoric from Washington, with Trump warning of possible action against the terminal if efforts to resolve the ongoing conflict and reopen key shipping routes fail.

The tanker’s diversion underscores the continued uncertainty surrounding global oil flows amid geopolitical tensions, as well as the challenges faced by countries like India in navigating sanctions while securing energy supplies.