Washington, Sept 19: The United States has announced that it will revoke the sanctions waiver granted in 2018 for operations at Iran’s Chabahar Port, a move that could affect India’s long-term plans to develop and operate the terminal. The decision will take effect on September 29, 2025, as part of Washington’s broader “maximum pressure” campaign against Tehran.The waiver, originally issued under the Iran Freedom and Counter-Proliferation Act (IFCA), had allowed India and other countries to carry out work on the port without the risk of US penalties. Chabahar is strategically important for India as it offers a direct trade route to Afghanistan and Central Asia by bypassing Pakistan.
In a statement issued on September 16, the US Department of State said the revocation was “consistent with President Trump’s maximum pressure policy to isolate the Iranian regime.” The statement warned that once the waiver ends, “persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA.” The department also noted that the decision was part of Washington’s efforts to disrupt “illicit financial networks that sustain the Iranian regime and its military activities.”
The US decision complicates India’s position. On May 13, 2024, New Delhi signed its first-ever long-term overseas port agreement — a 10-year deal with Iran’s Port and Maritime Organisation to operate Chabahar. Under the agreement, Indian Ports Global Limited (IPGL) committed an investment of about $120 million, in addition to plans for a $250 million credit line to build supporting infrastructure around the port.
For India, Chabahar is more than a commercial project. The port was first proposed for development by India in 2003, as it provides an alternative route to Afghanistan and Central Asia without relying on Pakistan. Chabahar also connects to the International North-South Transport Corridor (INSTC), which links India with Russia and Europe. The port has already been used to send wheat and other humanitarian supplies to Afghanistan, underlining its role in regional connectivity.
The revocation of the waiver now places India in a difficult situation. While New Delhi has invested political and financial capital in the project, it must also weigh its strategic partnership with Washington, particularly at a time when US-India relations are deepening in areas like defence, trade, and technology.
Analysts say the decision could force India to either seek a new arrangement with the US to continue work on Chabahar or scale back its involvement to avoid secondary sanctions. For now, the future of India’s ambitious plans at the port remains uncertain.