Effect of Mahajang: Iranian oil tanker coming to India turns mid-sea, now Ping Shun headed towards China

News India Live, Digital Desk: The direct impact of the ongoing fierce war in the Middle East and the increasing tension between America and Iran is now visible on India’s energy security. For the first time in the last 7 years, a huge oil tanker ‘Ping Shun’, carrying crude oil from Iran to India, has suddenly turned near the coast of Gujarat. According to the latest ship-tracking data, the tanker is now headed towards China’s Dongying port instead of India. This development has created a stir in the Indian oil market and strategic circles. The tanker was about to reach Vadinar in Gujarat, changed its route at the last moment. This Aframax tanker named ‘Ping Shun’, which was facing the brunt of US sanctions, was coming towards India’s Vadinar (Gujarat) port carrying about 6 lakh barrels of Iranian crude oil. The ship, which left Iran’s Kharg Island in early March, had announced its destination as India earlier this week. If it had reached India, it would have been the first consignment of oil from Iran to India since 2019. But late on Thursday night, when it was very close to the Indian coast, it suddenly changed its course and started giving signals to China. Payment issue or fear of war? Why the decision was changed: According to experts and commodity market analytics firm ‘Kpler’, the biggest reason behind this sudden change is considered to be payment related problems. Although President Trump granted a temporary 30-day waiver for Iranian oil tankers at sea, international banks are still refraining from transacting with Iranian entities. It is reported that sellers are now demanding immediate or upfront payment instead of the credit period of 30-60 days, which is proving challenging for Indian buyers to resolve. China becomes Iran’s safe haven While countries like India are exercising caution due to US sanctions and payment complexities, China continues to be Iran’s largest oil buyer. ‘Ping Shun’ turning towards China shows that China is still the most reliable and easy market for Iran. This is a big blow for India as crude oil prices were already skyrocketing due to tensions in the Middle East and India was looking for cheaper oil alternatives. Increasing pressure on India’s energy security The effective closure of the Strait of Hormuz and the US-Israel war with Iran have badly affected global oil supplies. India imports more than 80% of its oil requirement, so the loss of Iranian oil consignment is a matter of concern. However, experts say that if the terms of payment are resolved, then more such attempts can be made in future, but at present, ‘Ping Shun’ going towards China shows the compulsion of India’s ‘wait and watch’ policy.