India’s Chabahar dilemma: US sanctions on Iran threaten key port
India faces a delicate diplomatic challenge as US sanctions threaten its strategic investment in the Chabahar port, a vital trade link to Afghanistan and Central Asia.
KARACHI — As Indian Prime Minister Narendra Modi visited the United States last week for meetings with President Donald Trump, the fate of a strategic Iranian port — into which New Delhi has invested hundreds of millions of dollars — remained uncertain. Washington has ramped up its “maximum pressure” campaign on Tehran, revoking a key sanctions waiver that had shielded India’s involvement in the Chabahar port project.
Unlike Iran’s main port, Bandar Abbas, Chabahar sees minimal trade, but its strategic location has made it a crucial part of India’s regional ambitions. The port serves as India’s gateway to Afghanistan and Central Asia, offering a trade route that bypasses Pakistan.
In 2018, the United States granted Chabahar a sanctions exemption, recognizing its importance in facilitating Afghan trade and strengthening India’s role in the region. Even after Washington withdrew from the Iran nuclear deal, JCPOA, and imposed fresh sanctions, the waiver remained intact — until now.
President Trump’s latest directive instructs Secretary of State Marco Rubio to revoke or modify sanctions waivers that provide Iran with economic relief, explicitly including those linked to the Chabahar project. While Modi’s discussions with Trump did not clarify the port’s fate, New Delhi is reportedly assessing the potential fallout.
