From March until April 1941, "Yarra" was docked at Bombay for refitting. On 12 April, the sloop joined the escort of Convoy BP7 from Karachi to the port of Basra, in the Persian Gulf. After arriving in the gulf, "Yarra" became involved in the Anglo-Iraqi War. During August, the ship operated in Iranian waters in support of the Anglo-Soviet invasion. The sloop secured several ports and oil-producing facilities, sank the sloop , and was involved in the capture of two Iranian gunboats and the Italian ship "Hilda". In November, the sloop was transferred to the Mediterranean, and operated as part of the Tobruk Ferry Service.