US Sanctions on Chabahar Activate
The United States has activated new sanctions targeting India’s involvement in the Chabahar Port in Iran, ending a waiver that protected the project from U.S. penalties. These measures took effect on September 29, 2025.
End of Waiver
Since 2018, India had enjoyed a rare exemption under U.S. law that allowed continued work at Chabahar without facing sanctions. That waiver has now been revoked under the Iran Freedom and Counter-Proliferation Act (IFCA). Entities linked to the port project now risk U.S. penalties.
Strategic Importance
The Chabahar Port on Iran’s Gulf of Oman coast has long been central to India’s plan to reach landlocked Afghanistan and Central Asia via a route that bypasses Pakistan. India holds a long-term contract to operate parts of the port, and it has invested in its development.
Indian Response & Challenges
New Delhi is assessing its options in light of the sanctions. Analysts expect India to explore diplomatic, financial, and legal routes to safeguard its interests in Chabahar.
Broader Implications
With this move, the U.S. signals a firmer stance on Iran and its strategic projects. For India, the new sanctions complicate its regional connectivity goals and investment plans in the region.
