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The US reset in South Asia

September 20, 2025
in Opinion & Analysis
Reading Time: 2 mins read
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Washington is never lost in its desire to retain its strategic interests in South Asia. Trump’s revocation of sanctions waiver for India on Iran’s Chabahar Port and his pushback to regain access to Bagram Air Base in Afghanistan are tools of re-engagement in the region. As far as withdrawal of the waiver under the Iran Freedom and Counter-Proliferation Act is concerned, it is a blow to New Delhi and comes at a time when India and the US are in locked a duel over trade and tariff concessions. The intention, as far as the US is concerned, is to retain maximum pressure over the Islamic Republic in its endeavour to stop it from going nuclear.

The waiver rebuff will surely come as a challenge for India to protect its investment in the Chabahar Port to the tune of $120 million. It had also made consortium deals to raise another $250 million in credit for infrastructure around the port. The US move is like killing two birds with one stone, as it not only builds pressure on Tehran but also obstructs Beijing’s long-term financial commitments with Iran totaling $300 billion over the next two decades.

America’s plotting, likewise, to retake one of the largest air bases in Southwest Asia, Bagram, is also intended at checkmating China, as the Red Dragon as well as the Kremlin have made strategic inroads in Afghanistan. With peace eluding Afghanistan, the eruption of major powers’ rivalry will push back the region once again into military confrontations – a deal of sorts for the defence industry of the United States.

It remains to be seen whether India biting the dust in Chabahar will bring dividends for Pakistan, as it boasts Gwadar Port in Balochistan. With the port carrying immense trade potential for China, Central Asian States and Afghanistan, Islamabad will have to do some balancing act in its relations with Washington. Dealing with an impulsive incumbent in the White House will surely entail a give and take, and Pakistan must be prepared for it in view of its indispensable strategic location.

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