Donald Trump Lifts Sanctions on Chabahar Port in a Strategic Move in Support of India Following Meeting with Xi Jinping

In a dramatic diplomatic turn of events, Washington made a big announcement about India shortly after Donald Trump met with Chinese President Xi Jinping and the US and China signed a trade agreement.

Trump made the decision to maintain pressure on China while reinforcing US-India ties as part of a larger geopolitical plan. The United States sought to expedite a trade agreement with India while simultaneously ensuring China adhered to the provisions of the trade agreement with Beijing.

President Trump made a significant choice about Iran in order to do this, one that would bring India closer to the US. America unexpectedly overturned one of its most contentious rulings, which had caused India great anxiety. Officially, the sanctions that the United States had placed on Iran's operations at the Chabahar Port on September 29 have been removed.

Washington declared that until April 2026, all port-related restrictions would be lifted. Given that India obtained a 10-year lease for Chabahar Port in 2024, this choice is crucial. The port is an essential commerce route that gives India access to Afghanistan and Central Asia while avoiding Pakistan.

Additionally, it is a crucial component of the International North-South Transport Corridor (INSTC), which connects Mumbai and Russia. Regional logistics and economic lines between India and Russia would have been in danger if US sanctions had persisted.

In terms of strategy, Chabahar Port also acts as India's counterpoint to China-controlled Gwadar Port in Pakistan. Given its multi-billion dollar investment in port development, India would have faced significant strategic and economic defeats if the sanctions had remained in effect.

India first engaged Iran about Chabahar in 2003, when Prime Minister Atal Bihari Vajpayee was in office. To further expand the port, Prime Minister Narendra Modi inked a trilateral pact with Iran and Afghanistan in 2016. In 2018, he signed an official Indo-Iran accord.

Even though sanctions on the rest of Iran were still in place, the US gave India a limited exemption that same year that allowed humanitarian aid to be delivered to Afghanistan through Chabahar. However, Washington rescinded the exemptions and reinstated restrictions on the port after recent trade talks between the US and India came to a standstill.

As on September 29, there were harsh penalties for any organization operating in Chabahar. However, the US administration quickly changed this policy in a matter of weeks, primarily in an effort to mend fences with India. According to analysts, the action is a strategic retaliation against China in addition to trade considerations.

China's position via Gwadar Port is weakened by India's increased influence in the region as a result of Chabahar's continued functioning. President Trump seems to have two goals in mind: to make sure China keeps its end of the bargain in the new trade deal and to make India a more powerful regional force that counterbalances Beijing's hegemony.

In addition to accelerating its trade agreement with India, the US hopes to use New Delhi's increasing influence as leverage against China's growing influence by relaxing sanctions on Chabahar Port.