US airstrikes have reportedly continued to target Iran's Chabahar Port, a critical gateway for India's trade and strategic access to Afghanistan and Central Asia. The recent attacks, confirmed by Iranian state media, underscore ongoing tensions and raise significant concerns for New Delhi's regional interests.
India's Strategic Stake in Chabahar
Located in southeastern Iran on the Gulf of Oman, Chabahar Port is strategically vital for India. For two decades, India has viewed the port as an essential component of its economic and geopolitical strategy, particularly for bypassing Pakistan to reach landlocked Afghanistan and Central Asian markets. India signed a 10-year agreement in 2024 to operate the Shahid Beheshti terminal at Chabahar, highlighting its long-term commitment.
The port also serves as a crucial counterweight to China's growing influence in the region, especially with the China-funded deep-sea port of Gwadar in Pakistan, located just 140 km west of Chabahar. India fears Gwadar could be used for military or economic challenges. Furthermore, Chabahar is the southern anchor of the International North-South Transport Corridor (INSTC), a 7,200 km multimodal network connecting India, Iran, and Russia.
Investment and Sanctions Impact
India has made substantial investments in the Chabahar project. In the fiscal year 2024-25, India spent ₹400 crore. For 2025-26, the initial budget of ₹100 crore was later revised to ₹400 crore. However, budget documents for the Union Budget 2026 revealed a complete halt in funding for the project in 2026-27, with zero allocation for the upcoming financial year.
The port's operations have also been complicated by US sanctions against Iran. While the US Treasury Department initially exempted Chabahar Port from sanctions in 2018, the Trump administration revoked all exemptions in September 2025. India reportedly lobbied for an extension, securing it until April 26, 2026, while committing to scale down its operations there.
Uncertainty Amid Regional Conflict
The repeated American airstrikes, including a photo shared by US Defense Secretary Pete Hegseth showing a collapsing tower, which Associated Press identified as part of Chabahar, signal a volatile environment. These attacks, amidst a broader US-Iran conflict, create significant uncertainty for India's future role and investments in the port, potentially jeopardizing its strategic access and development plans in the region.