US revokes sanctions waiver at Iran's Chabahar port; India responds
What's the story
India has said it is currently assessing the consequences of the United States's decision to revoke sanctions waivers for the Chabahar Port project in Iran. "We have seen the US press statement regarding revocation of sanctions waiver for Chabahar Port. We are presently examining its implications," the Ministry of External Affairs (MEA). The waiver, issued under the Iran Freedom and Counter-Proliferation Act (IFCA) in 2018, had permitted India and others to continue work on the port without facing US penalties.
Waiver revocation
US 'maximum pressure' campaign against Iran
The US has decided to revoke the waiver from September 29, 2025, as part of its "maximum pressure" campaign against Iran's alleged nuclear program. The US State Department warned that after the revocation, those involved with Chabahar Port could face sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA). The department further said the move aligns with Washington's efforts to disrupt "illicit financial networks that sustain the Iranian regime and its military activities."
Strategic asset
Chabahar crucial for India's connectivity to Central Asia
The Chabahar Port project is vital for India as it seeks to create a direct trade and transit route to Afghanistan and Central Asia, bypassing Pakistan. In 2024, India Ports Global Limited (IPGL) had signed a 10-year lease agreement with Iran's Port and Maritime Organisation, committing $120 million for operations and another $250 million for infrastructure support. The port has also been used for humanitarian aid shipments, such as wheat aid to Afghanistan in 2023.
Development history
India committed to developing Chabahar port since 2003
India has been committed to the development of Chabahar Port since 2003, when discussions on the project began as part of the International North-South Transport Corridor. In May 2015, India signed a memorandum of understanding (MoU) for the development of Chabahar Port. The contract was later executed on May 23, 2016, in Tehran (Iran), during Prime Minister Narendra Modi's visit to Iran. The Ministry of External Affairs (MEA) had allocated ₹100 crore for Chabahar Port for 2024-25.