As the U.S. President signed an executive order intensifying economic pressure on Iran, the Indian government reaffirmed the significance of Chabahar Port for Delhi’s trade connectivity with Afghanistan and Central Asia.
The new directive from Donald Trump could potentially revoke India’s exemption from U.S. sanctions on Iran, threatening its cooperation in the development of Chabahar Port.
According to The Times of India, the White House has instructed U.S. Secretary of State Marco Rubio to review or revoke exemptions for countries engaging with Iran, including those related to the Chabahar Port project.
Speaking ahead of Indian Prime Minister Narendra Modi’s meeting with Donald Trump, Jaideep Mazumdar, a senior Indian foreign ministry official, emphasised that the development of Chabahar Port aligns with the shared strategic interests of India and Iran.
He stressed that India-Iran relations play a crucial role in enhancing regional connectivity, describing India’s long-term agreement with Iran for Chabahar Port’s development last year as a milestone in bilateral ties. He also underscored the port’s capacity to boost regional trade and its humanitarian significance in facilitating aid to Afghanistan.
During his first term in 2018, Donald Trump had granted Chabahar Port an exemption from U.S. sanctions on Iran, recognising its vital role in Afghanistan’s reconstruction efforts.
However, with the political shift in Afghanistan and Trump’s renewed push to counter Iran’s missile and nuclear programmes, it remains unclear whether the White House will extend this exemption.
Indian Prime Minister Narendra Modi is scheduled to meet Trump in Washington on Thursday, though it is still unknown whether the Chabahar Port issue will be on the agenda.
Chabahar Port provides India with crucial trade opportunities in Afghanistan and Central Asia, while also bypassing Pakistan, offering Afghanistan an alternative and reliable trade route.
