The United States has revoked the sanctions waiver for Iran’s Chabahar port, dealing a significant blow to India’s ambitions of using the facility as a strategic gateway to Central Asia.
The waiver, first issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), was intended to allow Afghanistan’s reconstruction and regional economic development projects to proceed without being hindered by Washington’s sanctions regime.
According to the US Department of State, the exemption will no longer apply after September 29, marking a fresh escalation of Washington’s maximum-pressure campaign aimed at isolating Tehran.
“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 department warned in its statement.
This development raises major concerns for India, which has been investing in the port as part of its broader strategy to bypass Pakistan and secure direct trade routes to Afghanistan and Central Asian markets.
In May 2024, Indian Ports Global Limited signed a long-term agreement with Iran’s Port and Maritime Organisation to operate the Shahid Beheshti terminal at Chabahar.
The deal, replacing the earlier 2016 pact, had previously been renewed annually and was seen as a milestone in India’s regional connectivity ambitions. However, US restrictions have repeatedly slowed the progress of the project.
Analysts say the latest move could complicate India’s foreign policy calculus, forcing New Delhi to navigate between maintaining ties with Washington and preserving its strategic foothold in Chabahar.
The port, located on the Gulf of Oman, has long been considered vital for India’s access to landlocked Afghanistan and beyond. With the waiver now revoked, the project’s future appears uncertain, as investors and operators weigh the risks of exposure to sweeping US sanctions.
