US-Iran Sanctions Put India’s Strategic Balancing to the Test

Special Correspondent, Dhaka:

India’s growing strategic partnership with the United States is facing another delicate test as Washington expands sanctions pressure on Iran and warns countries against helping Tehran bypass restrictions.

The issue came into sharper focus after Indian Prime Minister Narendra Modi met Iranian President Masoud Pezeshkian on the sidelines of the Shanghai Cooperation Organization summit in Kyrgyzstan. The meeting, held a week after the Trump administration launched its latest sanctions campaign, was their first since the Middle East war began six months ago.

Pezeshkian reportedly urged Modi to use India’s diplomatic contacts to encourage the parties involved in the conflict to return to dialogue. Modi, meanwhile, reaffirmed New Delhi’s interest in strengthening its long-standing relationship with Tehran and expanding bilateral trade.

The meeting highlights the careful balance India is trying to maintain. New Delhi considers Washington an important partner in trade, defense and the Indo-Pacific, while Iran remains relevant to India’s energy security, regional connectivity and access to Central Asia.

US Secretary of State Marco Rubio has warned that countries helping Iran evade sanctions could themselves face penalties. Washington has also indicated that countries engaging in Iran-related activities could receive a defined period to wind down such dealings before further sanctions are imposed.

India has already faced US scrutiny. Washington has sanctioned several India-based companies and individuals over alleged involvement in Iranian petroleum and petrochemical trade. However, US measures have so far stopped short of targeting India’s broader commercial relationship with Iran.

Bilateral trade between India and Iran has declined significantly from its 2018-19 peak because of earlier sanctions. Yet important economic links remain. Indian exports to Iran include pharmaceuticals and other goods that may qualify for humanitarian exemptions. India has also resumed Iranian crude imports after a seven-year gap, following a temporary US easing of sanctions amid the Middle East conflict.

Beyond trade, the Chabahar port gives India a strategic connection to Central Asia and Europe that bypasses Pakistan. Continued uncertainty over US sanctions, however, could complicate New Delhi’s ability to fully utilize the port.

The broader question is how far Washington will enforce secondary sanctions against India. A tougher approach could create friction with a major US strategic partner at a time when both countries see cooperation as important in balancing China.

India’s experience with Russia suggests New Delhi will resist external pressure when core interests are involved. However, analysts note that Iran does not carry the same strategic weight as Russia for India.

The outcome may therefore depend on how Washington manages the issue. Quiet diplomacy could allow India to preserve limited ties with Iran while avoiding a serious rupture with the United States. A more confrontational approach, by contrast, could turn Iran policy into another source of tension in an already complicated US-India relationship.

Leave a Reply

Your email address will not be published. Required fields are marked *