CrudeFriday, 17 April 2026·India
India Uses Yuan Payments to Secure Iranian Crude During Temporary U.S. Window
Indian refiners have turned to Chinese yuan to settle payments for Iranian crude purchases made under a temporary U.S. waiver, as they move quickly to secure supplies before the limited window closes.
According to market sources, these transactions are being processed through the Shanghai branch of an Indian bank, with payments routed in yuan to the sellers. The arrangement reflects a shift in payment mechanisms amid ongoing geopolitical and financial restrictions.
After some initial caution, Indian refiners stepped up purchases of Iranian oil during the short period when cargoes already loaded on tankers were permitted under U.S. approval. This opportunity is set to expire soon, with U.S. authorities indicating that the waiver will not be extended.
To manage supply risks, Asian buyers have used this temporary allowance to build inventories. India, in particular, has been actively securing crude from alternative sources as disruptions in the Middle East and constraints on key shipping routes tighten availability.
State-run refiners have resumed Iranian purchases for the first time in several years, while private-sector players have also taken advantage of the opportunity. These volumes are helping offset supply gaps created by reduced access to traditional sources.
The move to yuan-based settlements highlights how energy trade flows are adapting to evolving geopolitical conditions, with buyers and sellers exploring alternative financial channels to complete transactions. As the waiver period ends, uncertainty remains over how refiners will manage supply needs in an increasingly constrained market.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
According to market sources, these transactions are being processed through the Shanghai branch of an Indian bank, with payments routed in yuan to the sellers. The arrangement reflects a shift in payment mechanisms amid ongoing geopolitical and financial restrictions.
After some initial caution, Indian refiners stepped up purchases of Iranian oil during the short period when cargoes already loaded on tankers were permitted under U.S. approval. This opportunity is set to expire soon, with U.S. authorities indicating that the waiver will not be extended.
To manage supply risks, Asian buyers have used this temporary allowance to build inventories. India, in particular, has been actively securing crude from alternative sources as disruptions in the Middle East and constraints on key shipping routes tighten availability.
State-run refiners have resumed Iranian purchases for the first time in several years, while private-sector players have also taken advantage of the opportunity. These volumes are helping offset supply gaps created by reduced access to traditional sources.
The move to yuan-based settlements highlights how energy trade flows are adapting to evolving geopolitical conditions, with buyers and sellers exploring alternative financial channels to complete transactions. As the waiver period ends, uncertainty remains over how refiners will manage supply needs in an increasingly constrained market.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.