India Is Also Seeking a Legally Binding Commitment From Iran to Honor Any Interim Agreement Once Sanctions Ease

India and Iran are in talks over an interim arrangement to manage Chabahar Port, as New Delhi awaits potential US sanctions relief following a possible diplomatic agreement, according to an Economic Times report. India's six-month waiver from US sanctions for port operations expired on 25 April, prompting negotiations for a local port authority to oversee management until sanctions are lifted, with assurances that operational rights would revert to India. India is also seeking a legally binding commitment from Iran to honor any interim agreement once sanctions ease.

Strategic experts warn that China could expand its presence at the port if India loses its operational role. Chabahar is vital for connectivity to Afghanistan and Central Asia, offering access to the Indian Ocean and Gulf markets. In a written reply to the Lok Sabha, Minister of State for External Affairs Kirti Vardhan Singh said the government is assessing the implications of the waiver's expiry and remains engaged with stakeholders.

He noted that India Ports Global Limited (IPGL) has operated the port since 2018 via its subsidiary, and that India fulfilled its financial commitment of USD 120 million, with the final tranche transferred in August 2025. "As per the provisions of the main contract signed between IPGL and the Ports and Maritime Organisation (PMO) of Iran on 13 May 2024, India has fulfilled its financial commitment of USD 120 million towards the project. The final tranche of this amount was transferred to PMO in August 2025,"