India Paying for Iranian Oil in Chinese Yuan

India’s oil refineries are settling payments for Iranian crude oil in Chinese Yuan through ICICI Bank, according to four sources familiar with the matter.

This arrangement comes as the United States has temporarily eased sanctions on seaborne trade of Iranian and Russian oil for 30 days to help control rising global oil prices following the recent conflict.

Indian Oil Corporation (IOC), India’s largest state-owned refiner, recently purchased around 2 million barrels of Iranian oil — the first such import in nearly 9 years. The shipment is valued at approximately $200 million.

Additionally, four tankers carrying Iranian oil for Reliance Industries have recently docked at Indian ports. One of them, MT Felicity, has already discharged its cargo.

Both IOC and Reliance are making payments in Yuan through ICICI Bank’s Shanghai branch.

The US Treasury had announced the 30-day sanctions relief last month. However, US Commerce Secretary Scott Bessent stated on Wednesday that the waiver will not be extended further. The relief ends today (Sunday).

This development highlights the complexities of international oil trade amid ongoing US sanctions on Iran, with buyers seeking alternative payment mechanisms to continue imports.