US Revokes Chabahar Port Sanctions Waiver — What This Means for India

Last Updated on September 19, 2025 4:43 pm by BIZNAMA NEWS

AMN / WEB DESK

The United States has announced that it will revoke the sanctions waiver for operations at Iran’s Chabahar Port, effective 29 September 2025, a move that could complicate India’s ambitious connectivity plans in the region.

The waiver, granted in 2018, had allowed India to develop and operate the Shahid Beheshti terminal at Chabahar without attracting U.S. sanctions. The U.S. State Department confirmed that once the waiver ends, individuals and entities linked with port operations could face punitive measures under the Iran Freedom and Counter-Proliferation Act (IFCA). The decision, it said, aligns with Washington’s continuing “maximum pressure” policy against Tehran.

The timing is significant. In May 2024, India and Iran signed a 10-year agreement giving New Delhi a long-term role in managing the port. India pledged a US$250 million credit line for infrastructure and allocated over ₹100 crore for operational support in the current fiscal year. Chabahar has been central to India’s plans to access Afghanistan and Central Asia, bypassing Pakistan.

The revocation now raises serious concerns for Indian entities such as Indian Ports Global Ltd., which could find themselves exposed to U.S. sanctions. Analysts warn that this may disrupt financing, insurance, and dollar-denominated trade linked to the project. It may also discourage other international partners from engaging with the port, slowing progress on crucial infrastructure.

Diplomatically, the decision places New Delhi in a tight spot. India has deepening strategic ties with Washington but also considers Chabahar a vital link for trade and connectivity. Officials are reportedly exploring options, including seeking clarifications or exemptions, to safeguard Indian interests.

For now, the U.S. move casts uncertainty over one of India’s most important regional initiatives and its long-term partnership with Iran.

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