India-bound oil tanker carrying Iranian crude changes course close to China

April 3, 2026

An Eswatini-flagged Aframax tanker, the Ping Shun, carrying approximately 600,000 barrels of Iranian crude oil, was on course for India’s Vadinar port in Gujarat, potentially marking the country’s first such import in nearly seven years but changed direction near its destination and is now signaling Dongying in China’s Shandong province as its new destination.

The tanker loaded the crude around March 4 at Iran’s Kharg Island. It had been heading toward Vadinar, with an expected arrival late Thursday or early Friday (as of April 3, 2026), according to ship-tracking data from Kpler.

Close to the Indian coast, it made a sharp southward turn and updated its declared destination to China.

This development comes shortly after reports earlier this week suggested the vessel might deliver the first Iranian crude to India since May 2019.

India had halted such imports following the reimposition of US sanctions. The shift occurs amid a temporary 30-day US sanctions waiver (issued March 21, expiring April 19) for Iranian crude already loaded on tankers by March 20.

The waiver aims to boost global oil supply and ease prices amid the ongoing conflict in West Asia, which has disrupted flows through the Strait of Hormuz.

Market sources and analysts attribute the change primarily to payment-related issues. Iranian sellers have reportedly tightened credit terms, shifting from the earlier 30–60 day window toward upfront or near-term settlements.

This has heightened sensitivity to financial terms and counterparty risk in sanctioned trades.

Over 90% of Iran’s oil exports currently go to China. Challenges such as Iran’s exclusion from SWIFT and stricter payment demands make deals with other buyers like India more complex, even with the US waiver in place.