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July 18, 2018

The withdrawal of the US from the Iran nuclear deal is likely to deal a blow to Indiaโ€™s strategic investments in energy-rich Iran and land-locked Afghanistan as the Chinese strategic footprint there grows. Maintaining good relations with both Riyadh and Tehran will also become more challenging for New Delhi. The Iran dilemma materialized at the wrong time for Prime Minister Narendra Modi, as India is preparing for parliamentary elections in less than a year. The pressure being exerted by the Trump administration on the Modi government to stop all oil imports from Tehran is set to complicate Indiaโ€™s diplomatic ties with Iran. It remains to be seen how India will secure its interests in Afghanistan and Central Asia without Iranian support.

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