Washington ends the 2018 waiver shielding Chabahar from US sanctions, tightening pressure on Tehran and complicating India’s regional ambitions.
BY PC Bureau
The United States has announced it will revoke the sanctions waiver granted in 2018 for operations at Iran’s strategic Chabahar Port — a move that could complicate India’s role in developing the terminal. The decision, effective September 29, 2025, comes under Washington’s “maximum pressure” campaign against Tehran.
The waiver, issued under the Iran Freedom and Counter-Proliferation Act (IFCA), had enabled India and other countries to work on Chabahar without risking US penalties. For New Delhi, the port is of vital importance as it provides a trade route to Afghanistan and Central Asia while bypassing Pakistan.
In a September 16 statement, the US Department of State said the decision was “consistent with President Trump’s maximum pressure policy to isolate the Iranian regime.” It added: “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.”
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The State Department further said the move aligns with Washington’s broader effort to disrupt “illicit financial networks that sustain the Iranian regime and its military activities.”
Breaking: America revokes 2018 sanctions waiver allowing India to develop Chabahar Port in Iran
Starting September 29, US Treasury sanctions will apply to persons operating Chabahar Port pic.twitter.com/9HADLuPVTO
— Shashank Mattoo (@MattooShashank) September 18, 2025
What the US Move Means for India
The waiver revocation puts India in a tough position. On May 13, 2024, New Delhi signed its first long-term overseas port deal — a 10-year agreement with Iran’s Port and Maritime Organisation to operate Chabahar. Under the contract, Indian Ports Global Limited (IPGL) pledged around $120 million, along with a $250 million line of credit for infrastructure development.
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For India, Chabahar is more than a commercial hub. First proposed for development in 2003, it provides a crucial gateway to Afghanistan and Central Asia without reliance on Pakistan and connects to the International North-South Transport Corridor, linking India with Russia and Europe. The port has already facilitated wheat aid deliveries to Afghanistan and other critical shipments.
