Israeli attacks around the Iranian port city Chabahar have not hit the India-funded Shahid Beheshti freight terminal, according to reports The focus of the attacks was the military infrastructure around Chabahar.

Chabahar is a strategic Iranian port city on the Gulf of Oman that contains both commercial facilities and significant military infrastructure, including nearby air and naval bases. Recent reports indicate that the area hosts missile sites, which were targeted in the airstrikes 

India’s involvement with Chabahar faces other issues. It is currently working under a six-month sanction waiver from the US State Department effective till 26th April 2026, During this period India has already begun strategic withdrawal of the managerial staff.

India Ports Global Ltd (IPGL) – set up by the Ministry of Ports Shipping and Waterways to develop and operate international ports –  has handed over most daily operations to Iranian workers to “de-risk” Indian entities from looming US sanctions. The US had in January had threatened 25% additional tariffs on any country doing business with Iran.

The total cargo handled at the Shahid Beheshti terminal of Chabahar Port during the 2024-25 was approximately 2.23 million tonnes. The cargo handling volume has seen an upward trend, growing by over 82% in the five years leading up to the end of FY 2024-25. 

The current operational capacity of the port is around 8 million tonnes per year, with plans to expand it to 18 million tonnes in a future phase

It was back in 2003 that India and Iran formally agreed to develop the Shahid Beheshti terminal at Chabahar. Between 2003–2014 the progress remained minimal due to intense international pressure and Western sanctions on Iran’s nuclear program. However, India completed the Zaranj-Delaram highway in Afghanistan in 2009 to eventually link the port to the Afghan ring road.

In 2015 India and Iran signed a Memorandum of Understanding (MoU) to develop the port after the Iran Nuclear Deal eases sanctions. In 2017 India sent its first shipment of wheat to Afghanistan via Chabahar, proving the route’s viability. In December 2018 IPGL officially took over operations at the Shahid Beheshti terminal.

In May 2024 India signed a landmark long-term agreement to operate the Shahid Beheshti Terminal. India has committed approximately $120 million for port equipment and a $250 million credit line for infrastructure development.

The government of India has invested nearly $ 120 million for the supply of equipment for the port, which was instrumental in providing humanitarian and other types of emergency assistance to Afghanistan.