Why it matters:
The extension underscores the strategic importance of Chabahar for regional connectivity linking South Asia, Central Asia, and Russia — despite Washington’s broader sanctions regime against Iran. It also reflects the limitations of U.S. pressure, as allies continue to seek engagement with Tehran to serve their economic and geopolitical interests.
The big picture:
The port, jointly developed by Iran and India, serves as the main maritime hub for the International North-South Transport Corridor (INSTC), connecting the Indian Ocean to Russia and Europe through Iran.
The waiver, renewed until early next year, allows India’s Ports Global Limited (IPGL) to sustain its operations at the site without facing U.S. penalties.
Western sanctions have deterred many international investors, but Chabahar has repeatedly earned exemptions since 2018 due to its declared humanitarian and developmental role in Afghanistan and Central Asia.
Key points:
- The 10-year operating agreement between Iran and India, signed in 2024, covers management and modernization of the Shahid Beheshti Terminal.
- Once fully operational, Chabahar is expected to handle over 12 million tons of cargo annually, providing landlocked Central Asian nations with reliable access to the sea.
- The extension also reaffirms India’s interest in deepening cooperation with Iran and Russia under the INSTC framework, countering U.S. efforts to isolate Tehran.
- For Iran, Chabahar represents an example of successful resistance economics, maintaining growth and partnerships despite external sanctions.
State of play:
The Chabahar project rivals Pakistan’s Chinese-backed Gwadar Port, offering an alternative trade route that bypasses geopolitical chokepoints.
Iran continues to invite regional partners, including Uzbekistan and Kazakhstan, to invest in transport and logistics infrastructure at the site.
Despite Washington’s sanctions, the port’s continued operation demonstrates the failure of U.S. coercive policies to halt Iran’s economic integration with Asia.
Go deeper:
India Supports Investment in Chabahar Against Trump's Warnings
Mojtaba Darabi - seyed mohammad kazemi
