-- Indian refiners used Chinese yuan via ICICI Bank to settle roughly $200 million in Iran oil trades under a US waiver, Reuters reported Friday, citing four sources familiar with the matter.
Sources said payments for Iranian cargoes are being routed through ICICI Bank's Shanghai branch in Chinese yuan.
The arrangement follows a 30-day US waiver introduced last month to allow purchases of Russian and Iranian oil, aimed at easing energy prices during the Middle East conflict, the report said.
US Treasury Secretary Scott Bessent said Wednesday the waivers will not be extended, according to the report.
Indian Oil bought 2 million barrels of Iranian crude earlier this month in its first such deal in seven years, with the cargo valued at about $200 million, the report added.
Reliance Industries has also taken delivery of Iranian crude, with four vessels allowed to berth and at least one cargo already discharged, the report said, citing LSEG data and a shipping source.
Sources said both refiners are settling transactions in yuan via ICICI, though the identity of the counterparties receiving funds remains unclear.
IOC paid about 95% of the cargo value upon the supplier's notice of readiness, an uncommon structure compared with typical payment after delivery, sources told Reuters.
Indian Oil does not intend to purchase additional Iranian crude, the report said, citing one of the sources.
Indian refiners have previously used yuan for Russian oil purchases, according to the report.
India had largely avoided Iranian crude since 2019 due to US sanctions, while Chinese independent refiners have remained the primary buyers of Iran's exports, the report added.
ICICI Bank, Indian Oil, and India's Foreign Ministry did not immediately respond to' request for comments.
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