US Revokes Chabahar Port Sanction Waiver
The United States has announced it will revoke the sanctions exemption granted to India for its involvement in Iran’s Chabahar Port under the Iran Freedom and Counter-Proliferation Act (IFCA). The revocation becomes effective September 29, 2025.
Waiver History
The exemption had been given in 2018 and allowed India — along with other countries — to develop and operate parts of Chabahar without fear of U.S. sanctions. Once revoked, entities operating at Chabahar or engaging in activities described under IFCA may face U.S. penalties.
Strategic Importance for India
Chabahar Port is strategically important for India’s access to Afghanistan and Central Asia. It serves as an alternate trade route that bypasses Pakistan. India and Iran had in May 2024 signed a 10-year agreement for India Ports Global Limited (IPGL) to operate Chabahar in partnership with Iran’s Port & Maritime Organisation. Under this deal, India committed about USD 120 million and proposed another USD 250 million in credit for infrastructure.
Rising Uncertainty
The U.S. decision is part of its “maximum pressure” policy aimed at isolating Iran. The revocation adds uncertainty to India’s trade and connectivity plans involving the Chabahar-Zahedan railway and other regional projects.
