India is weighing options for its stake in Iran's Chabahar port, including a potential temporary exit, as a US sanctions waiver nears expiration, officials confirm. The strategic port, vital for regional trade, faces uncertainty after Washington's nuclear deal incentives expire, risking renewed pressure on Tehran. Delhi's decision could reshape regional energy flows, with analysts warning of disrupted supply chains and heightened geopolitical tensions. Indian state-owned companies hold a 10% stake, valued at over $1 billion, in the $15 billion project, which aims to bypass Pakistan and connect Central Asia to the Indian Ocean.

The sanctions waiver, extended twice since 2018, has allowed Indian firms to develop the port without breaching US restrictions on Iran. With the waiver set to lapse in days, officials hint at "options" without confirming divestment. A temporary exit could preserve ties with Washington while avoiding penalties, but sources stress no final choice exists. The port's role in exporting Iranian gas and Afghan minerals adds urgency, as delays may stall India's energy diversification plans.

Experts caution that inaction risks isolating India from both US and Iranian markets. A sudden stake sale might trigger capital flight, while maintaining involvement could strain US relations. The project's backers, including China and Japan, remain committed, but India's hesitation signals shifting priorities amid balancing acts. Chabahar's fate may hinge on last-minute US-Iran negotiations, though no breakthroughs are expected before the deadline.

Market watchers urge swift clarity, as ambiguity fuels speculation. If India exits, competitors like Qatar or South Korea could fill the void, altering the port's economic calculus. The situation underscores India's delicate balancing act: leveraging Iranian resources while navigating Western sanctions. A decision within days will test New Delhi's strategic agility in a high-stakes diplomatic tightrope.