India Scrutinizes U.S. Revocation of Chabahar Port Sanctions Waiver

The Ministry of External Affairs stated on Friday that India is "examining the implications" following the United States' decision to revoke the sanctions waiver related to the Chabahar Port project in Iran. Responding to inquiries about India's plans regarding the port, MEA spokesperson Randhir Jaiswal noted the recent announcement made by the U.S., emphasizing that India is currently assessing the potential impact of this decision.

The Trump administration made headlines earlier, announcing the end of the waiver of sanctions for the Iranian port of Chabahar within ten days, effectively revoking a special waiver granted to India back in 2018. As per a statement released by the U.S. Department of State, the operators of the Iranian port will face sanctions beginning September 29.

In alignment with President Trump's strategy to maximize pressure on Iran, the Secretary of State withdrew the sanctions exception granted under the Iran Freedom and Counter-Proliferation Act (IFCA) concerning Afghanistan's reconstruction assistance, effective until September 29, 2025. This reinforces U.S. efforts to target Iran's illicit financial networks, potentially impacting India's critical investments in Chabahar.

The financial measures target networks facilitating the sale of Iranian oil, with proceeds aiding Iran's Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and Ministry of Defence and Armed Forces Logistics (MODAFL). The funds support regional terrorist activities and weapon systems posing threats to U.S. interests.

Chabahar Port is strategically located in southeastern Iran, near the China-controlled Gwadar Port, and features two significant terminals, Shahid Kalantari and Shahid Beheshti, built to handle substantial cargo loads. In 2024, a pivotal 10-year agreement between India and Iran, granting operational control over the Shahid Beheshti terminal to Indian Ports Global Ltd., underscores India's strategic interests in the port.

(With inputs from agencies.)