India reassesses Chabahar port commitment as US sanctions pressure mounts |
India is weighing the future of its strategic investment in Iran’s Chabahar port as renewed US sanctions and political instability in Iran complicate New Delhi’s long-standing ambitions to use the project as a gateway to Central Asia, Russia, and Afghanistan. While Indian officials insist that engagement with Washington is ongoing, recent disclosures suggest New Delhi may be preparing for a possible exit if sanctions relief is not extended.
On January 16, India’s Ministry of External Affairs confirmed that it remains in dialogue with the United States over the Chabahar port project, following media reports that India could be forced to abandon its role in developing the port. The project, located in southeastern Iran on the Gulf of Oman, has long been viewed by India as a cornerstone of its regional connectivity strategy, offering direct access to landlocked markets while bypassing rival Pakistan.
“As you are aware, on October 28, 2025, the US Department of the Treasury had issued a letter outlining the guidance on the conditional sanctions waiver valid till April 26, 2026. We remain engaged with the US side in working out this arrangement,” Indian Foreign Ministry spokesman Randhir Jaiswal said, underscoring New Delhi’s attempt to preserve room for maneuver amid tightening restrictions.
The Chabahar port project has been under the shadow of US sanctions since 2012, when Washington intensified economic pressure on Iran over its nuclear program and regional activities. Despite this, India secured a significant diplomatic win in 2018 when it obtained a US sanctions waiver, arguing that Chabahar was essential for Afghanistan’s economic development and regional stability.
Under that waiver, India committed to developing and operating the Shahid Beheshti terminal at Chabahar. In 2024, India and Iran signed a ten-year agreement granting........