Chabahar port (File photo)
The United States has announced it will revoke the 2018 sanctions waiver for operations at Iran’s strategic Chabahar Port, a decision that could affect India’s development efforts there. Effective September 29, 2025, the move is part of Washington’s “maximum pressure” campaign against Tehran.
The US Department of State in a statement said that in consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, it has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025.
“Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA,” the statement said.
Located in Sistan-Balochistan province on the energy-rich country’s southern coast, Chabahar port is being developed by India and Iran to boost connectivity and trade ties.
How Will India Be Affected?
India would be affected by this decision, as it is involved in developing a terminal at the Chabahar port on the Gulf of Oman. On May 13, 2024, India signed a 10-year contract to operate the port that will help it expand trade with Central Asia.
This was the first time India would take over the management of an overseas port. New Delhi had proposed to develop Chabahar port way back in 2003 to provide Indian goods a gateway to reach landlocked Afghanistan and Central Asia using a road and rail project called International North-South Transport Corridor (INSTC), bypassing Pakistan.
The INSTC is a 7,200-km-long multi-mode transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.
US sanctions on Iran over its nuclear programme had slowed the development of the port.
The long-term agreement was signed by Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran. It replaces an initial 2016 pact, which covered India’s operations at Shahid Beheshti terminal in Chabahar port and had been renewed on an annual basis.