India said the war in the Middle East is a “complicating factor” as it holds talks with both Washington and Tehran over options to safeguard its $120 million investment in Iran’s Chabahar port.
“This issue is under discussion with both Iran and US,” Randhir Jaiswal, a spokesperson for India’s Ministry of External Affairs, said in a statement on Monday. “Obviously, the current conflict is also a complicating factor.”
New Delhi signed a 10-year contract with Iran’s Port and Maritime Organization in 2024, seeking to develop Chabahar as an alternative gateway to ship goods to Afghanistan and Central Asia, bypassing rival Pakistan. In 2018, the US gave India a sanctions waiver to operate at the port. That exemption was revoked in September 2025, but after lobbying from New Delhi, a waiver was given until April this year.
Officials had been hopeful the sanctions waiver would be extended, but rising tensions between the US and Iran have made that unlikely, Bloomberg News reported earlier this month, citing people familiar with the matter. India is now mulling a range of options, including a possible temporary divestment from the port, the report said. India doesn’t plan to completely exit the port, since there are plans to expand connectivity at the harbor through a rail link.
New Delhi is seeking to strike a balance between Washington — where ties have come under strain during President Donald Trump’s second term — and longstanding relations with Iran.
Trump’s war with Iran since February has added a new layer of complexity in US-India relations. Trump has ordered a naval blockade of the Strait of Hormuz to force Tehran to the negotiating table. India is heavily reliant on energy supplies through the strait and has been negotiating separately with Iran to allow its tankers to pass through safely.