India's Chabahar Deal with Iran, Threat of United States Sanctions

The agreement aims to boost India's trade with Central Asia, but potential US sanctions loom.

India's Chabahar Deal with Iran, Threat of United States Sanctions

On Monday, May 13, 2024, India signed a 10-year deal with Iran to develop and operate the Chabahar port, bolstering ties with a key Middle Eastern nation. Located on Iran's southeastern coast along the Gulf of Oman, the port will facilitate India's trade with Iran, Afghanistan, and Central Asia, bypassing Pakistan's ports in Gwadar. However, US sanctions on Iran have slowed progress.

In this episode of #Unraveled, host Marvi Sirmed talks with foreign policy expert Michael Kugelman about the strategic importance of the Chabahar Port agreement for India. They discuss how this development impacts India's relationships with the US, Iran, and other global powers.

Kugelman emphasizes the port's significance for India, saying, "India's goal has always been to partner with Iran to establish a connectivity initiative from Chabahar through Iran into Afghanistan and Central Asia."

However, the project faces major obstacles due to US sanctions on Iran. Kugelman notes, "The US tries to sideline or oppose these initiatives because of its hostile relations with certain countries." He also mentions that the US-India relationship is stronger than the US-Bangladesh relationship, stating, "New Delhi's response would be much stronger than Dhaka's."

Despite these challenges, Kugelman highlights potential benefits for US interests if the port development continues, particularly in countering China's influence in Iran.

Tune in for more.