Tanker 'Ping Shun' reroutes to China, ending India’s bid for first Iranian crude since 2019

NEW DELHI: The Aframax tanker Ping Shun, carrying 600,000 barrels of Iranian crude oil, has been diverted to Dongying, China, after failing to dock at India’s Vadinar port in Gujarat. Although a temporary 30-day US waiver in March 2026 provided a brief window for Iranian oil deliveries to stabilise global markets, the Ping Shun itself was sanctioned by the US Treasury in 2025. This created a significant payment deadlock, as Indian banks remained hesitant to process transactions for a sanctioned vessel while the seller reportedly demanded stricter, immediate payment terms.

Built in 2002 and possessing a carrying capacity of up to 120,000 metric tons, the ship’s arrival would have marked India’s first import of Iranian crude since May 2019. However, the commercial and legal complexities of the transaction ultimately led the cargo toward China, a frequent buyer of sanctioned barrels. While the Indian government has refrained from issuing an official response, the incident underscores the persistent difficulty of navigating energy security under the shadow of international sanctions.