What Happened: At least 50 containers of Afghan goods destined for Indian and Chinese markets have been held up at Iran's Chabahar Port due to U.S. sanctions preventing Afghan and Indian banks from transferring money through the port, The Economic Times reported May 15.
Why It Matters: Although trade between India and Afghanistan only amounted to $1.1 billion in 2018, the recent development highlights how U.S. sanctions are complicating New Delhi's relationship with Tehran as India is carefully maintaining a balancing act between Iran and the United States.
Background: Iran has traditionally been one of India's key suppliers of crude oil, although their relationship has come under strain due to Tehran's worsening relations with Washington.
- The Ripple Effects of the U.S. Move to Stop Oil Flows From Iran (April 22, 2019)
- India's Elections Begin, but Questions Over How They Will Play Out Remain (April 12, 2019)
- How the U.S. Is Complicating India's Relationship With Iran (Dec. 14, 2018)