India’s Strategic Iranian Port Development Faces US Sanctions Threat
NEW DELHI - India’s development of the Chabahar Port in Iran, a key component of its ‘Look West’ policy and a vital trade link to Central Asia and the Middle East, is facing potential setbacks as a US sanctions waiver expired Monday, analysts say. Washington’s decision to revoke the waiver threatens to delay construction, impede investment, and potentially force India to reroute trade through Pakistan, a geopolitical rival.
The Chabahar Port, located on Iran’s Gulf of Oman coast, is strategically significant as Iran’s only direct maritime access to the Indian Ocean and a crucial part of the International North-South Transport Corridor (INSTC) – a 7,200km (4,473 miles) multi-modal network connecting India, Russia, and Iran. The project’s future is now uncertain as the US reinstates sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA), potentially impacting any entities involved in the port’s operation or related activities.
Originally granted in 2018 during the Trump administration,the waiver aimed to facilitate Afghanistan’s reconstruction,including humanitarian aid deliveries. The US State Department stated the revocation is part of its “maximum pressure” campaign on Iran regarding its nuclear program.
Analysts warn the sanctions could complicate india’s efforts to boost trade with Afghanistan and beyond. Before the waiver, India relied on overland routes through Pakistan to reach Afghanistan; a return to this dependence would be a significant strategic disadvantage.
Chabahar comprises two ports, Shahid Kalantari and Shahid Beheshti, and serves as a vital link in the INSTC, offering a shorter and more efficient trade route compared to conventional options. The port’s development has been seen as a cornerstone of india’s broader regional connectivity initiatives and its efforts to counter Chinese influence in the region.
