India is engaged in ongoing discussions with Iran and the United States to determine the future of the Chabahar Port amid the expiration of a U.S. sanctions waiver and rising regional tensions. The port, situated in southeastern Iran’s Sistan and Baluchestan Province, remains a strategic hub for India’s efforts to establish trade routes to Afghanistan and Central Asia, bypassing Pakistan.

Indian Foreign Ministry spokesperson Randhir Jaiswal confirmed that talks were continuing with both Tehran and Washington, acknowledging that recent conflicts had complicated the situation. “This issue is being reviewed with Iran and the United States. Obviously, the current conflict is also a complicating factor,” he said.

Trouble escalated following a joint U.S.-Israeli attack on Iran on February 28 this year. Subsequently, U.S. President Donald Trump ordered a naval blockade of the Strait of Hormuz, a critical chokepoint through which India imports a large portion of its energy supplies. India has negotiated separately with Iran to ensure safe passage for its tankers through the strait.

India’s involvement with Chabahar stems from a decade-long agreement signed in 2024 with Iran’s Ports and Maritime Organization. The agreement is intended to develop the port as a vital alternative gateway to Afghanistan and Central Asia, circumventing Pakistan. The United States initially granted India a sanctions waiver in 2018 to facilitate operations at the port. Although the waiver was revoked in September 2025, it was extended through April 2026 after concerted lobbying by New Delhi.

Reports indicate that Indian officials had sought another extension of the sanctions relief, but growing tensions between Washington and Tehran, fueled by recent hostilities, have complicated prospects for further waivers. Despite these challenges, India intends to maintain its presence at the port, with plans underway to expand connectivity via a rail link to enhance regional trade.

New Delhi finds itself navigating a delicate balance between strengthening ties with the United States and preserving its longstanding relationship with Iran. The aggressive stance of the Trump administration toward Iran since February has introduced new complexities within the broader framework of U.S.-India relations.

Chabahar Port’s development has long been hindered by the intersecting effects of U.S. sanctions, fluctuating trade volumes, and competition from Pakistan’s nearby Gwadar Port, located approximately 170 kilometers away on the Arabian Sea coast. Nonetheless, Chabahar remains integral to India’s regional connectivity strategy, including its role in the International North-South Transport Corridor, which aims to connect India with Russia through Iran.