New Delhi, 18 September: The United States has revoked the sanctions waiver that allowed India to continue developing Iran’s Chabahar Port, a move likely to complicate New Delhi’s strategic and humanitarian outreach to Afghanistan and Central Asia.
The waiver, first granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), will expire on September 29, bringing Chabahar port operations and related activities under the ambit of American sanctions.
“Consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, the Secretary of State has revoked the sanctions exception issued in 2018,” the US State Department said in a statement. The announcement came alongside new sanctions on financial networks in Hong Kong and the UAE, accused of funneling millions from Iranian oil sales to Iran’s Revolutionary Guard Corps-Qods Force and the Ministry of Defence. “These funds are used to support regional terrorist proxies and advance weapons systems that pose a direct threat to US forces and our allies,” it added.
Chabahar, jointly developed by India and Iran, has been central to India’s plan to bypass Pakistan for trade and aid access to Afghanistan. Washington had twice— in 2018 and 2019— formally told New Delhi that Chabahar would remain exempt because of its role as a gateway for humanitarian supplies. The exemption was reaffirmed at the 2019 Indo-US “two-plus-two” dialogue.
Indian officials did not immediately comment on the waiver’s revocation, but analysts warned the decision could undercut India’s connectivity strategy. “This is not just about infrastructure—it is about access. Losing Chabahar would be a serious setback to India’s outreach to Afghanistan and beyond,” one observer noted.
The timing has added significance: last May, India and Iran signed a 10-year agreement to expand Chabahar. Within hours, the US had cautioned that countries deepening ties with Tehran risk “potential sanctions.” Strategically located on the Gulf of Oman, Chabahar has long been viewed by India as a counterweight to Pakistan’s Gwadar Port, operated by China.
India formally took over port operations in late 2018 after Washington had assured New Delhi of exemption. With Pakistan continuing to block land transit rights into Afghanistan, Chabahar has served as a vital channel for India’s humanitarian commitments and regional ambitions.
Now, with the waiver gone, any entity engaged in port operations or activities covered under IFCA risks secondary sanctions after September 29, putting India’s role at the project under serious strain.
