[15] The port of Chabahar is located on the Makran coast of Sistan and Baluchistan Province, next to the Gulf of Oman and at the mouth of the Strait of Hormuz.

[22][23] A former port named Tis in Chabahar's neighborhood dates back to the Sasanian times, and was known to Ptolemy as "Tesa".

[26] Modern Chabahar dates back to around 1970, when it was declared a municipality, and large port projects were started by order of Mohammad Reza Pahlavi, the Shah of Iran.

The American naval officials held talks with their Iranian counterparts on securing an "option" to operate out of Chabahar in the event of an emergency.

A part of the agreement pertains to a memorandum of understanding worth $600 million for Iran to purchase locomotives and freight cars from India.

[35] In November 2018, The United States has exempted the multinational Chabahar port project from its sanctions against Iran due to its economic importance to Afghanistan.

At the inauguration of the new export route, officials said 23 trucks carrying 57 tonnes of dried fruits, textiles, carpets and mineral products were dispatched from the southwestern Afghan city of Zaranj to Iran's Chabahar port.

[37][38] On 14 July 2020, Iran proceeded with the construction of the Chabahar-Zahedan rail link independently, citing delays in the proposed funding from India.

[40] In late February 2024, the Taliban-led government of Afghanistan announced an investment of $35 million in the Chabahar port in southern Iran.

[41] According to The Diplomat, cooperation between Afghanistan and Iran can provide the Taliban regime with more policy options and reduce its dependence on Pakistan.

At this time, Iran invited India to develop the Chabahar port to obtain ready access to Afghanistan.

[48] In March 2012, ships from India docked at Chabahar carrying 100,000 tonnes of wheat under humanitarian aid to Afghanistan.

[52] All this will bring cargo to Bandar Abbas port and Chabahar port, and free Kabul from its dependence on Pakistan to reach the outer world, giving India access to Afghanistan and beyond to Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia and Europe via 7,200-km-long multi-modal North–South Transport Corridor (INSTC).

[48] Despite intentions, India's involvement in the infrastructure development within Iran has been minimal, possibly due to the Western pressure to apply sanctions.

[62] As per the deal, India will also be developing various industries, including aluminum and urea production plants, in the Chabahar economic zone attached to the port.

[64][65] On 29 October 2017, the trilateral transit trade and route was implemented when the first shipment of wheat was sent from India to Afghanistan via Chabahar.

[32] The India–Iran–Afghanistan three-way memorandum of understanding (MoU) plans have committed at least $21bn to Chabahar–Hajigak corridor,[66] including $85m for Chabahar port development by India,[61] $150m line of credit by India to Iran,[61] $8bn India-Iran MoU for Indian industrial investment in Chabahar Special Economic Zone,[51] $11-billion Hajigak iron and steel mining project awarded to seven Indian companies in central Afghanistan,[51][52] and India's $2bn commitment to Afghanistan for developing supporting infrastructure including the Chabahar-Hajigaj railway,[52] with potential for several times more trade via connectivity to 7,200-km-long multi-mode North–South Transport Corridor (INSTC) connecting to Europe and Turkey, R297 Amur highway and Trans-Siberian Highway across Russia,[67] and planned Herat to Mazar-i-Sharif railway providing access to Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan.

[69] India had initially proposed a plan to construct a 900-km Chabahar-Zahedan-Hajigak railway line that would connect Chabahar to the mineral-rich Hajigak region of Afghanistan.

[70][71] In 2011, seven Indian companies acquired rights to mine central Afghanistan's Hajigak region, which contain Asia's largest deposit of iron ore.

However, on 14 July 2020, Iran announced that it would be proceeding with constructing the Chabahar-Zahedan railway independently, citing delays in the Indian funding as the reason for dropping the partnership.

[79][67] India's minister of Road Transport and Highways Nitin Gadkari also stated that Indian companies could potentially invest over ₹1 lakh crore (US$12 billion) in the Chabahar Special Economic zone.

[19] Indian news commenter Shishir Gupta described India's Chabahar Port deal as "a counter to the China-Pakistan Economic Corridor," as it has "broken through the strategic encirclement by China and Pakistan.

[92] India needs access to iron from Afghanistan's Hajigak mine and other natural resources from the Central Asian countries of Kazakhstan, Turkmenistan, and Uzbekistan, which is made possible by the Chabahar port.

[94] The US also sees the Indian presence in greater Central Asia beneficial for spreading the soft power of democratic and friendly regimes.

[19] India hopes to see the Western countries use the Chabahar route to link to Afghanistan and reduce their dependence on Pakistan.

[97] However, in 2016, a retired Pakistani military officer characterized cooperation between India, Iran, and Afghanistan as a "security threat to Pakistan", that had "ominous and far-reaching implications" to the region.

He also bemoaned the country's increasing "isolationism" and blamed what he called the “inaction” of the Foreign Office of Nawaz Sharif's government.

[32] Consistent with its desire to be seen as a significant regional player, Iran has taken the initiative to engage with all the neighbouring countries to enhance the transit potential of Chabahar.

It is also a key partner in the International North-South Transport Corridor (INSTC) along with Russia, Ukraine, Turkey, Oman, Syria, India and the Central Asian countries, which aims to connect South and Central Asian countries to Northern Europe via Iran and Russia.

Specifically with respect to Chabahar, Iran has envisioned it as a key port in linking India with Afghanistan and Central Asian countries.