A picture taken on February 25, 2019 shows workers resting at the Shahid Beheshti Port in the southeastern Iranian coastal city of Chabahar, on the Gulf of Oman. (Photo by ATTA KENARE / AFP)
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Moneycontrol16-01-2026, 14:27

Chabahar Project at Risk: Iran Unrest, Trump Tariffs Threaten India's $500M Investment

  • India's $500 million Chabahar Port project faces uncertainty due to ongoing unrest in Iran and new tariff threats from US President Donald Trump.
  • The Chabahar Port is crucial for India, providing a land bridge to Afghanistan and Central Asia, bypassing Pakistan's restricted access.
  • US President Donald Trump's proposed 25 percent tariff on countries trading with Iran revives fears of secondary sanctions, complicating India's involvement.
  • Instability in Iran could disrupt port operations, security, and transit agreements, potentially slowing down or derailing the project.
  • China's deep economic ties and strategic agreement with Iran pose a long-term risk, potentially marginalizing India's presence if it hesitates.

Why It Matters: Iran's instability and US tariff threats jeopardize India's strategic Chabahar Port investment and regional connectivity.

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