The United States has revoked a key sanctions waiver granted in 2018 for the Iranian port of Chabahar, effective September 29, 2025—a move with significant implications for India, which is actively developing and operating a terminal at the port under a new 10-year agreement. Chabahar port
Chabahar, located in Sistan-Balochistan province on Iran’s southern coast, is not only the closest Iranian port to India but was also seen as strategically important to connecting India to Central Asia, bypassing Pakistan. Chabahar port
The revocation now places those operating at the port—including Indian entities—at potential risk of U.S. sanctions under IFCA, unless further exemptions are granted.
Previously, the U.S. waiver had been granted under the Iran Freedom and Counter-Proliferation Act (IFCA) to facilitate Afghanistan’s reconstruction and regional economic development.
The withdrawal of sanctions waiver is part of President Donald Trump’s maximum pressure policy aimed at isolating the Iranian regime.
“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,” said the U.S. Department of State in a statement.
India signed a 10-year contract on May 13, 2024, to operate the Shahid Beheshti terminal at Chabahar Port. The agreement was signed between Indian Ports Global Limited (IPGL) and Iran’s Port & Maritime Organisation (PMO), replacing an earlier 2016 pact that had been renewed annually. Chabahar port
In New Delhi’s calculus, the port was considered a cornerstone of India’s regional connectivity and trade strategy. Chabahar port
The Indian Ministry of External Affairs (MEA) allocated Rs 100 crore to the Chabahar project for the 2024–25 fiscal year, reflecting its continued commitment, as per Indian media reports.
Washington’s move to revoke the waiver comes amid broader efforts to counter Iran’s regional influence.
The State Department also unveiled new designations against individuals and entities in Hong Kong and the United Arab Emirates for facilitating the sale of Iranian oil.
“These networks have facilitated the sale of Iranian oil, with proceeds benefiting Iran’s Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL),” the statement said.
The U.S. reiterated its resolve to block Iran’s illicit revenue streams:
“As long as Iran devotes its illicit revenues to funding attacks on the United States and our allies, supporting terrorism around the world, and pursuing other destabilizing actions, we will continue to use all the tools at our disposal to hold the regime accountable.”
The decision could create a diplomatic rift, particularly with India, which sees Chabahar as a key gateway to Afghanistan and Central Asia.
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Muhammad Luqman is Associate Editor at Views News Now. He writes on wide-ranging issues including economy, South Asia, the Middle East, agriculture, economy and innovation. Luqman has worked some of the leading news organizations and won acclaim for his original and research-based works.
