India Faces Setback as US Withdraws Sanctions Waiver Granted for Iran’s Chabahar Port Operations

TEHRAN: The United States has withdrawn a sanctions waiver previously granted to India and other countries for operations at Iran’s Chabahar Port, Indian media reports said.

The waiver, in place since 2018, had allowed India to continue developing and managing the port despite US sanctions on Iran. The revocation of this waiver will take effect from September 29, ending years of diplomatic flexibility provided by Washington.

Chabahar Port has been a strategic transit hub for India, facilitating trade with Iran, Afghanistan, and Central Asia, while bypassing Pakistani ports such as Karachi and Gwadar.

Earlier this year, India signed a 10-year agreement with Iran to operate one of Chabahar’s terminals. The deal, finalized in May 2025 in Tehran, marked a significant long-term commitment by New Delhi to invest in the port, with plans to inject $370 million into the project.

Although Chabahar Port was envisioned as a key geopolitical and economic link between South Asia and Central Asia, its development has faced delays due to concerns over US sanctions on Iran. The removal of the waiver may present new challenges for India’s regional ambitions.

Despite these hurdles, Chabahar Port continues to be crucial for India’s regional connectivity strategy, particularly for accessing landlocked Afghanistan and engaging in trade with Central Asian republics without relying on Pakistani infrastructure.

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