US Withdraws Chabahar Port Sanctions Waiver for India

Chabahar Port Sanctions Waiver Revoked by US

The United States has announced the withdrawal of the sanctions waiver previously granted to India for developing Iran’s Chabahar Port. This waiver, issued in 2018, had allowed India to invest in the port for facilitating trade with Afghanistan and Central Asia without attracting US sanctions. The revocation, effective September 29, 2025, is part of the US administration’s strategy to intensify pressure on Iran.

Background

Waiver of 2018: Allowed India to develop Chabahar Port despite sanctions on Iran.

Strategic role: Chabahar is Iran’s only oceanic port, connecting India to Afghanistan and Central Asia, bypassing Pakistan.

US justification: Removal aligns with the “maximum pressure” campaign against Iran.

Impact on India

Connectivity setback: India’s plans to access Afghanistan and Central Asia through Chabahar will face hurdles.

Geopolitical challenge: Strengthens China’s hold on Gwadar Port in Pakistan, a rival to Chabahar.

Economic cost: India Ports Global Ltd, which has been operating Chabahar since 2018, may face financial and operational disruptions.

Regional strategy: The move complicates India’s role in stabilising Afghanistan and diversifying regional trade routes.

Implications for the Region

Afghanistan trade: Flow of humanitarian and reconstruction supplies could be affected.

Iran’s position: Likely to deepen ties with China and Russia.

Global dynamics: Adds strain to India–US–Iran relations and reshapes connectivity politics in West and Central Asia.

FAQs

1. What is Chabahar Port’s importance for India?
It provides India direct access to Afghanistan and Central Asia, bypassing Pakistan, making it critical for regional trade and connectivity.

2. Why did the US grant a waiver in 2018?
To support Afghanistan’s reconstruction by allowing essential trade and transit through Chabahar despite sanctions on Iran.

3. What changes after the waiver’s withdrawal?
India and other partners involved in the port’s development will now risk secondary US sanctions if they continue activities.

4. How will Afghanistan be impacted?
The movement of goods, particularly food and humanitarian aid, may become more difficult, hurting its fragile economy.

5. How does this benefit China and Pakistan?
With Chabahar constrained, Pakistan’s Gwadar Port — developed with China — becomes a stronger hub for regional trade, reducing India’s strategic space.