Indian oil refineries are paying for crude oil imported from Iran in Chinese yuan under a temporary easing of US sanctions, according to four sources familiar with the matter who spoke to Reuters. Sources said the payments are being processed through ICICI Bank, which is routing the transactions via its Shanghai branch to transfer funds to Iranian sellers. The United States recently relaxed sanctions on Iranian and Russian seaborne oil trade for 30 days, aiming to stabilize rising global oil prices amid ongoing tensions involving Iran. Taking advantage of this window, India resumed imports of Iranian crude. According to the sources, India’s largest state-owned refiner, Indian Oil Corporation, imported around 2 million barrels of Iranian oil—its first such purchase in nearly nine years—valued at approximately $200 million. At the same time, four tankers carrying Iranian crude destined for private energy giant Reliance Industries were allowed to dock at Indian ports, with at least one shipment already discharged.
Sources indicated that both Indian Oil Corporation and Reliance Industries settled payments in yuan through ICICI Bank. However, no official comments have been made by the companies involved or India’s Ministry of External Affairs. Analysts say that longstanding US sanctions had complicated payment mechanisms for Iranian oil, discouraging many buyers. The temporary relief has now enabled the use of alternative currencies such as the yuan. Meanwhile, US Commerce Secretary Scott Bessent stated that the sanctions relief aimed at stabilizing oil markets would not be extended, meaning the current waiver expires immediately, bringing the temporary easing of restrictions on Iranian oil trade to an end.
Source: Reuters.