- By Priyanka Koul
- Sat, 18 Apr 2026 11:56 AM (IST)
- Source:JND
Indian refiners are settling payments for rare cargoes of Iranian oil purchased under a temporary US sanctions waiver using Chinese yuan, according to a report by Reuters.
As per the report, these transactions are being routed through ICICI Bank. Responding to the development, the government said such payments are fully compliant with existing rules.
The purchases come after Washington granted waivers last month, allowing countries to buy Russian and Iranian oil at sea in an effort to stabilise global energy markets that had surged amid the US and Israel’s conflict with Iran.
While the US has extended the waiver for Russian oil, the relief on Iranian crude is set to expire tomorrow. Treasury Secretary Scott Bessent earlier indicated that the US would not extend this exemption.
Despite payment-related challenges deterring some buyers, several refiners have proceeded with purchases, acquiring millions of barrels of Iranian oil at sea.
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This includes India’s first import of Iranian crude in seven years, with state-run Indian Oil Corp purchasing two million barrels aboard the very large crude carrier Jaya, valued at 200 million dollars. The report added that four other vessels carrying Iranian oil have also been permitted to berth in India.
Payments for these deals are being settled through ICICI Bank, which is routing funds in Chinese yuan to settler accounts, Reuters said.
“There is nothing incriminating in this,” a top official said, responding to the report.
"Meeting our domestic need is the important thing for us. Our OMCs are operating within the rules," said Sujata Sharma, Joint Secretary, Ministry of Petroleum & Natural Gas.
Meanwhile, the ongoing conflict involving the US, Israel, and Iran has disrupted the Strait of Hormuz, a key maritime route that carries nearly one-fifth of the world’s oil leading to a surge in crude and gas prices. However, India has remained relatively less affected compared to other Asia-Pacific countries.