West Asia war clouds Chabahar port talks: India holding discussion with both US and Iran

West Asia war clouds Chabahar port talks: India holding discussion with both US and Iran

A police officer walks around at Shahid Beheshti Port in the southeastern Iranian coastal city of Chabahar Photograph: (AFP)

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India is discussing the future of Chabahar Port with Iran and the US after sanctions waiver expiry. MEA says talks continue despite tensions. The port is strategic for trade via the International North-South Transport Corridor and regional connectivity.

India is discussing the issue around the Chabahar port with both Iran and United States, said the Ministry of External Affairs said on Monday (Apr 27). This comes after the US sanctions waiver on Iran expired on April 26. New Delhi has two options now of either choosing to exit the 23-year-old project in the Iranian port city or face US sanctions. MEA spokesperson Randhir Jaiswal told media persons during a press meet that the West Asia war has made the issue complicated but it is discussing the issue despite evolving situation. It is imperative to note that India did not allocate any funding to Chabahar port in its Budget announcement on Feb 1, 2026.

“The issue regarding Chabahar is under discussion with both Iran and the United States. Obviously, the current conflict is also a complicating factor. We will keep you posted as the situation evolves," it said.

Also Read: Iran ambassador calls Chabahar port vital for regional access amid US sanctions uncertainty

India planning exit from Chabahar port as US sanction waiver expires?

Earlier, it was reported that the Union Government is planning divestment of the Chabahar port and leave the control of the strategically significant port with a local Iranian entity, Business Standard reported. The report suggests that India Ports Global Ltd (IPGL) would sell its holding in India Ports Global Chabahar Free Zone (IPGCFZ) to an Iranian entity as the extended US sanction waiver expired on April 26. The report also suggests that the control would revert back to India if and ever the sanctions were to be lifted or a new waiver is secured. The report suggests that the Indian government has previously explored the possibility of ignoring US sanctions and operating a terminal in the port.

Also Read: No funding allocated for Chabahar port in Indian Budget 2026

India enjoyed exemptions from sanctions on the Chabahar port since 2018, and invested around $120 million in equipment procurement for the Chabahar project. However, in September 2025, the Trump administration withdrew the waiver. However, in the following month, it again issued an extension of the waiver, clarifying that activities at Chabahar Port would remain protected from US sanctions until April 26, 2026.

Why was Chabhar port important for India?

India was part of the 10-year agreement with Iran in 2024 that allowed India to operate the Shahid Beheshti Port terminal in Iran. The port is often described as the Golden Gate to West and Central Asia. It was part of India's ambition to operate ports internationally. This was India's response to China's development of Gwadar Port in Pakistan. It prevents China from having a monopoly over the shipping lane in the Indian Ocean and helps monitor maritime activity in the Arabian Sea and the Gulf of Oman. It also acts as a node of the International North-South Transport Corridor that allows India to transport goods to Russia and Afghanistan, which Pakistan often denies to India.

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Navashree Nandini works as a senior sub-editor and has over five years of experience. She writes about global conflicts ranging from India and its neighbourhood to West Asia to the...Read More

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