India is set to divest its stake in Chabahar Port, transferring control to an Iranian entity just as a US sanctions waiver expires. Chabahar, located on Iran's southeastern coast, is crucial for trade with Afghanistan and Central Asia, providing India a strategic route that bypasses Pakistan. Despite the divestment, India aims to preserve its long-term interests in the port, having already invested approximately $120 million in its development. This decision is driven by the need to navigate the complexities of US-Iran relations without completely withdrawing from the partnership. While the divestment may appear as a cooling of ties, both nations recognize the importance of Chabahar in their respective strategies. India plans to continue its involvement in a supportive capacity, potentially as a partner or advisor, ensuring that the port remains operational for regional trade and aid.