US continues to strike Chabahar Port amid Iran war: Why should India care

The US appears to have continued its strikes on Chabahar Port, a key trade route for Afghanistan. US defence secretary Pete Hegseth shared a photo of a tower appearing to collapse after a strike. 

According to a report in the Associated Press, the photo is of the Chabahar Port tower, even as Hegseth did not attribute it so. 

The attack on Chabahar is not a one-off incident. In fact, the port has been repeatedly targeted by American airstrikes. Iranian state media acknowledged three rounds of strikes on the facility. 

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Before the attacks, the US Treasury Department exempted Chabahar Port from sanctions in 2018. However, in September 2025, the Trump administration revoked all exemptions made for Chabahar. India reportedly lobbied to get the exemptions extended till April 26, 2026, and gave its word to wind down operations there. 

INDIAN INVESTMENTS

The budget documents of Union Budget 2026 revealed a complete halt in funding for the Chabahar project in 2026-27. There is no allocation for the project in the upcoming financial year.

India had spent ₹400 crore on Chabahar in 2024-25. For 2025-26, the government initially budgeted ₹100 crore, which was later increased to ₹400 crore in the Revised Estimates. However, the allocation for this year has dropped to zero.

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WHY SHOULD INDIA CARE?

India had signed a 10-year agreement in 2024 to operate the Shahid Beheshti terminal at Chabahar. The project is considered strategically important for securing access to Afghanistan and Central Asia without passing through Pakistan.

Located in southeastern Iran on the Gulf of Oman, Chabahar consists of two terminals, Shahid Kalantari and Shahid Beheshti. The port has been an integral part of India's economic and strategic plans for the past two decades.

Chabahar is important to India mainly because of its location. 

Pakistan lies between India and landlocked Afghanistan and Central Asia. Due to persistent tensions with Pakistan, a land route to these regions is not feasible for India. Chabahar provides an alternative maritime route, with shipping between the Iranian port and Iran's west coast, followed by road and rail transit through Iran to Afghanistan and Central Asia. India has used this route repeatedly over the last ten years.

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There is also a strategic aspect to Chabahar's significance. In November 2016, Pakistan opened the China-funded deep-sea port of Gwadar at the mouth of the Gulf of Oman. Although Gwadar is a commercial port, India's concerns have grown over China's influence there, fearing it could be used to challenge India economically or militarily through naval operations.

Chabahar is about 140 km west of Gwadar and is also a deep-water port on the Gulf of Oman. It provides India with a strategic presence that helps reduce risks posed by Gwadar. 

Additionally, Chabahar is the southern node of the International North-South Transport Corridor (INSTC), a 7,200 km network of railroads, highways, and maritime routes connecting Russia and India through Iran.