India has secured a crucial diplomatic victory, confirming a six-month exemption from US sanctions on Iran’s strategically important Chabahar Port. The move shields India’s long-term investment and operations at the port, a project central to its regional connectivity and trade ambitions. With a $370 million commitment made under a 10-year agreement signed last year, the Chabahar Port serves as a vital gateway for India to access Afghanistan and Central Asian markets without relying on neighbouring Pakistan. This exemption ensures uninterrupted progress on a project New Delhi has long regarded as a cornerstone of its West Asia strategy.

The Ministry of External Affairs (MEA) announced the breakthrough on Thursday, emphasising that the US sanctions will not apply to India’s port development efforts in Iran. The timing of this clarity is significant, as India and the United States are currently working to finalise a major trade agreement. “We continue to remain engaged with the US side on finalising the trade deal. Both sides are continuing to hold discussions,” the MEA spokesperson stated, adding that further details would be shared by the Ministry of Commerce as talks progress. This waiver helps preserve diplomatic momentum between the two nations during sensitive negotiations.

Notably, Washington has previously recognised Chabahar’s strategic relevance. In 2018, the Trump administration granted an exception even while imposing sweeping sanctions on Iran’s economy and energy sector. The exemption acknowledged the port’s role in facilitating humanitarian aid and supporting Afghanistan’s economic development, especially when its main port at Bandar Abbas faced capacity challenges. India’s continued presence at Chabahar is also seen as balancing China’s growing footprint in the region, particularly Beijing’s involvement in Iran’s Chabahar-rival port, Gwadar, in Pakistan.

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This latest development follows recent US actions tied to Iran’s nuclear programme, which triggered broader United Nations-linked sanctions pressure on Iranian facilities. Despite this tightening environment, India has once again secured operational flexibility — a sign of Washington’s recognition of New Delhi’s geopolitical importance and the port’s strategic function. The waiver reinforces the perception of India as a key regional stabiliser and strengthens its hand in West Asian diplomacy.

Meanwhile, the MEA confirmed that India is also closely reviewing the implications of recently announced US sanctions targeting Russian oil companies. “We are studying the implications of the recent US sanctions on Russian oil companies. Our decisions naturally take into account the evolving dynamics of the global market,” the spokesperson said. India has consistently defended its right to make sovereign energy choices based on national interest, insisting on securing affordable fuel for its 1.4 billion citizens amid volatile global markets.

Reiterating its long-standing policy, the government stressed that its energy strategy remains driven by diversification and affordability. “Our position on the larger question of energy sourcing is well-known,” the MEA spokesperson added. “In this endeavour, we are guided by the imperative to secure affordable energy from diverse sources to meet the energy security needs of our people.” As geopolitical rivalries continue to reshape global supply chains, India’s ability to maintain balanced ties with the US, Iran, and Russia underscores its increasingly assertive foreign policy and growing strategic weight.

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