India seeks to extend a U.S. sanctions waiver to keep using Iran’s Chabahar Port for trade.

In order to continue its Chabahar Port projects in Iran, India is negotiating with the United States to extend a conditional sanctions waiver that expires on April 26, 2026. In October 2025, the U.S. Treasury issued a waiver that permits limited engagement in spite of more extensive sanctions. India sees the port as essential for trade routes to Afghanistan and Central Asia, and the two countries trade $1.6 billion annually. Wheat and environmentally friendly pesticides have been shipped as part of the project, which is run under a long-term contract. However, ongoing unrest in Iran and U.S. threats of a 25% tariff on nations doing business with Iran have increased pressure, leading India to reconsider its involvement while maintaining diplomatic efforts.