The waiver, granted in 2018, had allowed India to develop and operate the port without falling foul of American sanctions on Iran. The facility, located on Iran’s Gulf of Oman coast, has been central to India’s strategy of establishing a trade and transit route to Afghanistan and Central Asia, bypassing Pakistan.
The Donald Trump administration announced that the waiver will be withdrawn effective September 29, as part of its “maximum pressure” campaign against Tehran over its suspected nuclear programme. The US State Department cautioned that “once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA (Iran Freedom and Counter-Proliferation Act) may expose themselves to sanctions.”The announcement came alongside a broader US move to target a financial network generating millions for the Iranian military. In a September 16 statement, Principal Deputy Spokesperson Thomas “Tommy” Pigott said the designations were part of “additional actions in support of maximum pressure on Iran,” underscoring Washington’s effort to choke off revenue streams that it alleges fuel Tehran’s destabilizing activities.
India has invested heavily in Chabahar through a state-run company. In May 2024, New Delhi and Tehran signed a 10-year agreement for port operations, backed by a $250 million Indian credit line for infrastructure development. The pact signalled India’s long-term commitment to the project, which both nations regard as a strategic asset.
Beyond geopolitics, the port has served humanitarian purposes. In 2023, it facilitated the shipment of 20,000 tonnes of wheat aid to Afghanistan, while in 2021 it was used to deliver eco-friendly pesticides to Iran.
The revocation threatens to complicate India’s future role in Chabahar, a project seen not only as an economic gateway but also as a critical link in New Delhi’s regional outreach.
