The United States, led by President Donald Trump, has made public that it will cancel the waiver on sanctions that was issued in 2018 for activities at Iran’s Chabahar Port, from September 29, 2025.
What Is the Change?
The waiver was originally made in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) to enable India and other parties to build and operate facilities at Chabahar Port without fear of U.S. sanctions.
As of September 29, this sanctions exception will be withdrawn. Those who keep operating or taking part in activities linked with the port could face sanctions under IFCA.
The U.S. State Department has attributed the move to President Trump’s “maximum pressure” campaign against Iran.
Why Chabahar Port Matters
Strategic Position: Chabahar Port, located in Iran’s Sistan-Baluchestan province, is Iran’s deep-water port in the south on the Gulf of Oman. It gives India a direct logistic corridor to Afghanistan and Central Asia, without involving Pakistan.
Economic & Connectivity Role: The port is part of the agreement among India, Iran, and Afghanistan to create the International Transport and Transit Corridor. It is designed to boost trade, help supply humanitarian aid (for example to Afghanistan), and facilitate regional connectivity.
Indian Investment: India has already invested significantly in Chabahar, including supplying high-capacity harbour cranes, developing infrastructure, and undertaking operations via Indian Ports Global Limited (IPGL).
Potential Impact & Concerns
Trade Disruption: Indian companies, among others working at Chabahar, might be scared of potential U.S. sanctions now that the waiver is revoked. This would negatively impact trade corridors to Afghanistan and Central Asia.
Diplomatic Strain: The timing makes India–U.S. relations complicated. Reversal comes at a time when there is resumed trade negotiation, which could bring friction.
Strategic Competition: Chabahar has been seen as a counterweight to Chinese influence in the region, particularly through Gwadar Port in Pakistan. Forfeiting the waiver can dent India’s strategic influence.
What Comes Next
India needs to reassess its legal, financial, and operational exposure related to Chabahar post-September 29.
Stakeholders might approach diplomatic talks with the U.S. to get clarity on the extent of sanctions and try to negotiate safe passages.
There may be changes in local trade plans or other routes being planned to minimize reliance on Chabahar in the event of sanctions creating difficulties in operations.
Conclusion
The withdrawal of the Chabahar Port sanctions waiver is a major turn in U.S. Iran policy and a turning point for Indian regional initiatives. With commerce, infrastructure investment, and geopolitical interests all circumventing Chabahar, the next few weeks will be crucial for defining responses from India, Iran, and other regional actors.
