By Sudhi Ranjan Sen and Mihir Mishra
April 25, 2026 – India is exploring different options regarding its investment in the Chabahar port in Iran. This comes as a U.S. sanctions waiver is set to expire soon. Officials who wish to remain anonymous shared that one possibility is temporarily selling off its stake in the project.
India is having separate discussions with the U.S. and Iran about its $120 million investment in the port. One option on the table is to transfer the stake to an Iranian company temporarily. However, officials stated that India does not intend to completely withdraw from the port, as there are plans in place to enhance connectivity with a rail link.
Officials were hopeful for an extension of the sanctions waiver, which expires on April 26, but increasing tensions between the U.S. and Iran make this seem unlikely. A final decision on the investment at the port has not been reached yet.
The Indian Ministry of External Affairs and the Ministry of Ports, Shipping, and Waterways did not respond to inquiries for more information. Iran’s embassy in New Delhi also did not reply.
In 2024, New Delhi signed a 10-year agreement with Iran’s Port and Maritime Organization to develop Chabahar as a key logistics hub for transporting goods to Afghanistan and Central Asia, bypassing rival Pakistan. The U.S. initially granted India a sanctions waiver to operate at the port in 2018, but it was revoked in September 2025. However, following requests from New Delhi, a new waiver was given until April of this year.
India’s External Affairs Minister Subrahmanyam Jaishankar mentioned in February that the country is actively engaging with all parties to address the consequences of these developments.
According to the Business Standard newspaper, India is considering transferring its stake to an Iranian entity.
New Delhi is trying to maintain a careful balance between its relationship with Washington, which has been strained during Trump’s second term, and its long-standing ties with Iran.
Trump’s ongoing conflict with Iran since February has complicated U.S.-India relations further. He has put a naval blockade in place at the Strait of Hormuz to pressure Tehran into negotiations. India depends heavily on energy supplied through this strait and is negotiating with Iran to ensure the safety of its tankers passing through.
The Chabahar port serves as a significant connection point for the North-South Transport Corridor, a network stretching 7,200 kilometers connecting Russia and Central Asian nations. Since 2018, India has sent over 4 million tons of food aid to Afghanistan through this port, as reported by India’s External Affairs Ministry.