Washington Ends Chabahar Sanctions Waiver

The United States has decided to withdraw the sanctions waiver for the Chabahar Port in Iran, which has been in force since 2018, with the revocation taking effect on 29 September 2025. Under the Iran Freedom and Counter-Proliferation Act, the waiver had allowed India’s involvement with Chabahar for trade and transit purposes without fear of U. S. penalties.

A State Department statement by Principal Deputy Spokesperson Thomas Pigott confirmed that from the effective date, individuals or entities operating Chabahar Port or engaging in related infrastructure, transit, or economic development work could be exposed to sanctions under IFCA. Pigott described the action as aligned with the U. S. “maximum pressure” campaign aimed at isolating the Iranian regime.

India’s Ports Global Ltd has held operational control of the Shahid Beheshti terminal at Chabahar under a 10-year agreement signed in 2024 with Iran’s Port and Maritime Organisation. Previously, India had been permitted to supply equipment—such as mobile harbour cranes—and undertake development of access infrastructure without running afoul of U. S. sanctions. The port has also played a role in delivering aid to Afghanistan and facilitating connectivity to Central Asia.

The decision will also impact other stakeholders, given that the waiver had covered not just operational work at the port but also associated rail links, shipment of non-sanctioned goods, and import of Iranian petroleum products for Afghanistan.

U. S. officials emphasised that the revocation is part of efforts to clamp down on Iran’s financial networks that are accused of supporting its military and regional proxy operations. As part of the same policy push, sanctions have been announced against several entities in Hong Kong and the UAE, alleged to be facilitating Iranian oil sales whose proceeds benefit the Islamic Revolutionary Guard Corps and Ministry of Defence.

For New Delhi, the development presents immediate challenges. The strategic value of Chabahar—offering India access to Afghanistan and Central Asia while bypassing Pakistan—has been central to its foreign policy and trade aspirations. The move may force Indian operators to reassess investment strategies, risk exposure, and diplomatic engagement both with the U. S. and Iran.

From Tehran’s perspective, revoking the waiver undermines one of the few bridges available for engagement with India under sanction-pressure. Iran has sought to use Chabahar as a linchpin for regional trade corridors and economic cooperation, especially with Afghanistan.
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